Question 1: You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 12.50 percent semiannual coupon bonds are selling at a price of $1,212.11. These bonds are the only debt outstanding for the firm.

a) What is the current YTM of the bonds?(Round final answer to 2 decimal places, e.g. 15.25%.)

b) What is the after-tax cost of debt for this firm if it has a marginal tax rate of 34 percent?(Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

c) What is the current YTM of the bonds andafter-tax cost of debt for this firmif the bonds are selling at par?(Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answers to 2 decimal places, e.g. 15.25%.)