The

$1818-$year,

$$$$1$ comma $0001,000$

par value bonds of Waco Industries pay

$1212$

percent interest annually. The market price of the bond is

$$$$925925,$

and the$$ market's required yield to maturity on a$$ comparable$-$risk bond is

$1515$

percent.

a$.$ Compute the$$ bond's yield to maturity.

b$.$ Determine the value of the bond to you given the$$ market's required yield to maturity on a$$ comparable$-$risk bond.

c$.$ Should you purchase the$$ bond?

Question content area bottom

Part $1$

a$.$ What is your yield to maturity on the Waco bonds given the current market price of the$$ bonds?

$13\mathrm{.}1013\mathrm{.}10\%$

$($Round to two decimal$$ places.$)$

Part $2$

b$.$ What should be the value of the Waco bonds given the$$ market's required yield to maturity on a$$ comparable$-$risk bond?

$$$enter your response here

$($Round to the nearest$$ cent.$)$