1-Briefly discuss current bond yields (any type: treasury, corporate...)

2-

Debt is typically either via loans or bonds. The tax effect is always accounted for in calculating cost of capital. Typical problem progression calcualte the after tax cost of debt for the below. Use tax rate of 30%.

Show your inputs.

a. Bond selling price $1000, flotation costs $15, 20 year maturity. Par $1000. 4% coupon

b. Bond selling price $1000, flotation costs $15, 15 year maturity. Par $1000. 4% coupon

c. Bond selling price $1000, flotation costs $15, 10 year maturity. Par $1000. 4% coupon

d. Loan at a stated rate of 5%

e. Loan at a stated rate of 6%

f. Bond selling price $1000, flotation costs $25, 20 year maturity. Par $1000. 4% coupon

g.Bond selling price $1000, flotation costs $35, 20 year maturity. Par $1000. 4% coupon

h. Loan at a stated rate of 8%

i. Loan at a stated rate of 8.5%