1. A semiannual, 6 percent bond matures in 14 years and has a face value of $1,000. The market quote on this bond is 1,021. What is the aftertax cost of debt if the tax rate is 34 percent?

2. Meiston Press has a debt-equity ratio of 1.70. The pre-tax cost of debt is 8.95 percent and the cost of equity is 14.0 percent. What is the firms weighted average cost of capital (WACC) if the tax rate is 34 percent? (hint: from debt-equity ratio, if you have $1 raised from equity then you have $1.7 raised from debt. So the total money raised is $2.7. Use these to calculate the % funds raised from each source)