(45 points) Suppose Sachs's 6th Avenue and semi-annual payments was trading in mid-2009 (recession) for a price of $980. Risk free rate was 300 and expected market return 9%. Assume that in default bond investors lose 60% of what is owed to them. a) What was the bond's YTM? (You may use 07/01/2009 as the settlement date) 10-year, $1000-par value bond with an 8% coupon rate 4. Bo Suppose the debt rating was B. Was YTM an accurate estimate of the cost of borrowed capital for Sachs 6th Avenue? Explain briefly b) If you answered "no" in b) provide two alternative estimates of Sach's cost of borrowed capital in mid-2009. c)