1.M&M Manufacturing issued P1,000, 30-year bonds 4 years ago at a coupon rate of 12% compounded semiannually. The bonds are currently selling for P1,150 each. M&M's marginal tax rate is 30%. Calculate cost of debt after tax. (Use AYTM)

Group of answer choices

5.35%

3.74%

7.49%

10.70%

2.A company obtained a short-term loan from a bank. Information about such loan is as follows:

Principal of loanP10,000,000

Stated interest rate10%

Terms1 year

If the loan is add-on interest, the effective rate is

Group of answer choices

10.00%

11.11%

9.09%

8.89%