15.. Suppose that you buy a TIPS (inflation-indexed bond with a 2-year maturity and a (real) coupon of 4% paid annually. if u buy the bond at its face value of 1000 and the inflation rate is 8% in the first year and 3% in the second year, what willl be your total cash flow at the end of year 2 (Hint: total cash flow= coupon + face value in nominal terms)

17. ABC company has 100 bonds outstanding that are selling at their par value of $1000 each. Bonds with similar characteristics are yeling a pretax 8.6%.the firm also has 4000 shares of common stock outstanding. The stock has a beta of 1.1 and sells for $60 per share. the u.S t bill is yielding 4%, the market risk premium is 8%, & the firms tax rate is 21%. what is the firms weighted average cost of capital assuming its earnings are sufficient to classify all interests as a tax-deductible expense?