16) Abiomed has just announced that their debt has been downgraded and is now rated CCC. This news has made the price of Abiomed's bonds drop to $700. Historically, CCC rated debt defaults 12.2% of the time. If Abiomed defaults on their debt, bond holders can expect to lose $0.30 for each dollar invested. Given no other changes regarding Abiomed's debt from the previous question, what is the cost of Abiomed's debt now? 10 points 15) Abiomed has 5 bonds outstanding rated AAA. Each bond has a face value of $1,000, pays an annual coupon payment of $35, matures in 10 years, and trades at a price of $979. Abiomed has no preferred stock outstanding but does have 2,000 shares of stock outstanding. The stock trades at a price of $6 per share. Abiomed's beta is 1.31. The risk- free rate is 1.9% and the expected return on the market is 10%. The corporate tax rate is 21%. Given this information, what is Abiomed's weighted average cost of capital? 10 points 16) Abiomed has just announced that their debt has been downgraded and is now rated CCC. This news has made the price of Abiomed's bonds drop to $700. Historically, CCC rated debt defaults 12.2% of the time. If Abiomed defaults on their debt, bond holders can expect to lose $0.30 for each dollar invested. Given no other changes regarding Abiomed's debt from the previous question, what is the cost of Abiomed's debt now? 10 points