1. Barasa Trading company has a 20-year, $1,000 par value bonds that pay 6 percent interest annually. The market price of the bonds is $1,200, and your required rate of return is 8 percent. Required: a. Compute the bond's expected rate of return. b. Determine the value of the bond to you given your required rate of return. C. Should you purchase the bond? d. Without doing any computations, if interest was paid semi-annually, would you buy the bond or not? Explain why or why not. 10. The capital structure for the Xyz Corporation is as detailed here below Capital Structure 15000) Capital Structure Bonds Preferred Stock Common Stock Amount $2,500 500 7,000 $10,000 XYZ has a 6 percent before tax cost of debt. a 15 percent cost of preferred stock, and a 20 percent cost of common stock. The company intends to maintain the current capital structure in future. Required: 1. Compute the firm's weighted average cost of capital (WACC). ii. If the required rate of return is 10 percent, should the firm maintain the current capital structure? Explain why or why not