Question B2 (15 marks) (a) A company has just issued a 6% coupon, 10-year bond. The credit rating is BBB. The par value of the bond is $1,000 and the coupons are paid semi-annually. What is the current price of the bond if it offers a yield to maturity (YTM) of 4.8%? (8 marks) on its price? (b) What is the effect of a bond's YTM (3 marks) (c) ABC Ltd is raising $180 million for a new project. It can raise $126 million via debt with a pre-tax cost of 6%; raise the rest via equity with a cost of 22%. The corporate tax rate is 16.5%. What is the weighted average cost of capital (WACC) for this project? (4 marks)