1. The approximate yield on a 25-year 10 percent annual coupon LDC bond selling at 77 cents on the dollar is about 13.17% Tor F? 2. Moon firm has sale 200,000, total assets 400,000, total liabilities 50,000 and total shareholders' equity 90,000. PD = 0.6(D/E) - 0.06(SIA) The Probability of Default (PD) using the above model is about 40% Tor F