Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. The marginal tax rate is T_c = 0.40.

a.	A $1,200, one-year loan at 9%.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

PV (tax shield)

$

b.	A seven-year loan of $1,200 at 9%. Assume no principal is repaid until maturity. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

PV (tax shield)

$

c.	A $1,200 perpetuity at 8%.

PV (tax shield)

$