4. For this problem, you must identify all the mistakes made in solving the problem and give the correct answers for part a & b.

First Business has 10,000 bonds outstanding that pay $80/year in interest and have 12 years left until maturity. The current market value of those bonds is $820.

a. What is their cost of debt on the bonds?

b. if the YTM on the bonds is 10.5%, what is the total market value of the bonds?