8. Kori Company offers bonds that pay interest at 8% semi-annually and pay taxes at a 40% rate. Given that these bonds have a 15 percent yield to maturity. What is Kori's after-tax cost of debt? A. 15.0% B. 4.8% C. 6.0% D. 3.2% E. 9.0%

11. Which of the following statements on Bonds is Not true : A. Yield to maturity is the rate of return earned on the bond held until maturity B. Annual Coupon payment is computed as coupon rate* face value C. The value of the bond today is the present value of all cash flows that will be generated by the bond D. The value of a bond changes over time because the coupon rate ofthe bond changes over time E. The value of the bond changes over time because the market interest rates change over time

12. Assume that the corporate bond yield curve is upward-sloping. Under this condition, which of the following statements is correct? A. Inflation is expected to decline in the future B. The Maturity Risk Premium could explain why the yield curve slopes upward C. Long-term rates are more volatile than short-term rates D. Long-term bonds are better than short-term bonds E.The treasury yield curve must be downward sloping