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# The 13​-year, ​\$1000 par value bonds of Waco Industries pay 6 percent interest annually. The market...

The 13​-year, ​\$1000 par value bonds of Waco Industries pay 6 percent interest annually. The market price of the bond is ​\$935​, and the​ market's required yield to maturity on a​ comparable-risk bond is 5 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?

Purchase the bond as the bond is priced lower

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