Buchanan Corp. is refunding $9 million worth of 10% debt. The new bonds will be issued for 7%. The corporation's tax rate is 38%. The call premium is 9%. What is the net cost of the call premium after taxes?

• $537,200

• $517,200

• $502,200

• $506,700

If you invest $20,000 at 8% interest, how much will you have in 9 years? Use Appendix A to calculate the answer.

• $39,980

• $94,752

• $10,000

• $30,000

Lou Lewis borrows $21,000 to be repaid over 10 years at 11 percent. Repayment of principal in the first year is: Use Appendix D to calculate the answer. (Round your intermediate calculations to the nearest dollar value.)

• $1,256

• $1,340

• $3,566

• $1,483

Solow Corp. has a bond with annual interest payments of $210 maturing in 15 years at a value of $1,000 per bond. The current market price is $820. What will the nominal yield be?

• 24%

• 23%

• 25%

• 21%

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

• 12.18%

• 11.18%

• 10.18%

• 11.68%