1. Calculate the aftertax cost of debt under each of the following conditions. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

	Yield		Corporate Tax Rate		Aftertax Cost of Debt
a.	9.0	%	23	%		%
b.	9.5	%	25	%		%
c.	7.5	%	30	%		%

2. Royal Jewelers Inc. has an aftertax cost of debt of 8.50 percent. With a tax rate of 30 percent, what can you assume the yield on the debt is? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Yield: %