What is price of a bond with coupon rate of three percent

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Problem 1: What is the price of a bond with a coupon rate of 3%, payable annually, a face value of $1000, 8 years to maturity, and a yield to maturity of 4%?

Problem 2: Consider a firm that has a debt-equity ratio of 1/4. The rate of return for debt is 7% and the rate of return for equity is 13%. The corporate tax rate is 31%. What is the weighted average cost of capital? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer.

Reference no: EM132934313

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