Buchanan Corp. is refunding $10 million worth of 11% debt. The new bonds will be issued for 7%. The corporation's tax rate is 33%. The call premium is 8%. What is the net cost of the call premium?

$551,000 $571,000 $536,000 $540,500

A bond with a coupon rate of 7.7%, maturing in 11 years at a value of $1,000 and current market price of $840 will have a current yield of (Round your answer to 2 decimal places.)

9.67% 10.17% 9.17% 8.17%

Solow Corp. has a bond with annual interest payments of $200 maturing in 15 years at a value of $1,000 per bond. The current market price is $820. What will the nominal yield be?

20% 24% 23% 22%