Buchanan Corp. is refunding $10 million worth of 10% debt. The new bonds will be issued for 8%. The corporation's tax rate is 31%. The call premium is 8%. What is the net cost of the call premium?

$567,000 $556,500 $552,000 $587,000

A bond with a coupon rate of 8.5%, maturing in 10 years at a value of $1,000 and current market price of $760 will have a current yield of (Round your answer to 2 decimal places.)

12.18% 11.68% 10.18% 11.18%

Solow Corp. has a bond with annual interest payments of $160 maturing in 14 years at a value of $1,000 per bond. The current market price is $980. What will the nominal yield be?

16% 20% 19% 18%