Asbury Corp. issued 30-year bonds 11 years ago with a coupon rate of 9.5%. Those bonds are now selling to yield 7%. The firm also issued some 20-year bonds 2 years ago with an 8.9% coupon rate. The two bond issues are rated equally by Standard and Poors and Moody's. Asbury's marginal tax rate is 40%. Assume face value of the bonds is $1,000. Assume that the coupon payments are semi-annual.

1. What is Asbury's after-tax cost of debt? Round the answer to two decimal places. ------------------------------
2. What is the current selling price of the 20-year bonds? Round the answer to the nearest cent

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Asbury Corp. issued 30-year bonds 11 years ago with a coupon rate of 9.5%. Those bonds are now selling to yield 7%. The firm also issued some 20-year bonds 2 years ago with an 8.8% coupon rate. The two bond issues are rated equally by Standard and Poors and Moody's. Asbury's marginal tax rate is 30%. Assume face value of the bonds is $1,000. Assume that the coupon payments are semi-annual.

a What is Asbury's after-tax cost of debt? Round the answer to two decimal places. ------------------------

b. What is the current selling price of the 20-year bonds? Round the answer to the nearest cent

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Please Answer both the questions with correct answers.

Thanks,