QUESTION 1 Yankees Corporation has 6.5 percent coupon bond outstanding, with annual interest payments, and is priced at par value. The bond has 30 years to maturity. If interest rates suddenly decreases by 1 percent, what is the percentage change in the price of these bonds? 14.86% 14.53% 14.25% 13.98% - 14.37% -13.88% -14.16% QUESTION 2 Ingram Company has a target capital structure of 65 percent common stock and 35 percent debt. Its cost of equity is 11.8 percent, and the cost of debt is 5.9 percent. The relevant tax rate is 25 percent. What is Ingram's WACC? 9.54% 10.21% 9.78% 10.49% 9.22% 10.03% 8.99%