11. Weir Inc. has a bond in its capital structure that has 20 years to maturity left. The bond has a 9.25% coupon paid annually, sells at a price of $1,000 and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation?

4.35% 4.58% 4.83% 5.08% 5.55%

12. A 15-year bond with a face value of $1,000 currently sells for $800. One year later, if the discount rate is still the same, which of the following statements is CORRECT?

The bonds price will still be exactly $800. The bonds price will still be somewhat greater (perhaps by around $10 more). The bonds price will still be somewhat less (perhaps by around $10 less). The bonds price will still be significantly greater (perhaps by around $100). The bonds price will still be significantly less (perhaps by around $100).