3. You'd like to buy a 20-year, noncallable bond with an annual coupon rate of 8.4% paid semi-annually. The bond has a par value of $1,000. If you require an 7.75% nominal yield to maturity on this investment, what should you be willing to pay for the bond?

a. $1065.54

b. $565.07

c. $1065.02

d. $1912.53

e. $1044.66

Question 32 of 35 A Moving to another question will save this response. 10 points Save Answer S Corp. is expected to pay a $2.55 dividend at year end, the dividend is expected to grow at a constant rate of 4.50% a year, and the common stock currently sells for $35 a share. The before-tax cost of debt is 5.50%, and the tax rate is 40%. The target capital structure consists of 55% debt and 45% common equity. What is the company's WACC? Do not round your intermediate calculations. a. 6.69% b. 7.97% C. 7.12% d. 9.24% e. 8.39%