(a)

What is the price of a $1000 face value bond that pays 10% annual coupon interest if the this bond has another 5 years to maturity if the current market interest is 12%.

(b)

What is the yield to maturity of the bond (assuming annual interest payments) that will mature in 10 years if the current price of the bond is $1,150.00? The bond has an 8% coupon rate and a face value of $1,000.

c) Mr Anderson wishes to accumulate $1,000,000 at the end of 30 years.To do this, he needs to deposit an equal amount into the bank at the end of each year.If he can earn 3% compounded annually, how much does he need to deposit each year?

d) KL Inc's capital is made up of 50% debt and its debt has a pretax interest rate of 8%. TL's common stock trades at $6.00 per share and its most recent dividend was $0.50. Future dividends are expected grow by 5%. If the tax rate is 30%, what is KL's WACC?