Problem $9$:

Calculate the price of a bond that has a $10$ year duration, Face Value of $$1,000,$ coupon at $6\%$ and yield to maturity at $9\%.$

Discuss the relationship between bond prices and interest rates? Problem $11$:

Use the cost of equity from Problem $9.$ You have $60\%$ equity and $40\%$ debt as the capital structure. If the cost of debt is $5\%$ calculate the WACC if the tax rate is $40\%?$