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1. What is the price of a bond with a coupon rate of 8%, payable semi-annually, a face value of $1000, 12 years to maturity,

1. What is the price of a bond with a coupon rate of 8%, payable semi-annually, a face value of $1000, 12 years to maturity, and a yield to maturity of 7.5%?

2. Consider a firm that has a debt-equity ratio of 1/2. The rate of return for debt is 6% and the rate of return for equity is 14%. The corporate tax rate is 32%. 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.

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