The Company's bond which will mature in 2030. what will be the current price in 2019 will YTM equal the cupon rate.

Could YTM (3.5%) be used as cost for future project with debt? explain.

what is the tax rate in 2019? the compant is anticipating an effective rate of 27%. which rate should the company use to calculate the after tax cost of debt? explain

Exhibit-2 \begin{tabular}{|l|r|l|l|l|} \hline Treasury Bills Yielding (3 Month) & 2.45% & & & \\ \hline Treasury Bonds & & & Prime Rate & 5.5 \\ \hline 1 year & 2.54% & & Commercial Paper Avg, & \\ \hline 5 year & 2.47% & & & \\ \hline 10 year & 2.65% & & & \\ \hline \end{tabular} The company issued bond $1 billion with a cupon rate 7.55 on Feb15, 2000 The bonds will mature in 2030 \begin{tabular}{|l|r} \hline Selling Price & $136.38 \\ \hline yielding & 3.53% \\ \hline \end{tabular} Exhibit-2 \begin{tabular}{|l|r|l|l|l|} \hline Treasury Bills Yielding (3 Month) & 2.45% & & & \\ \hline Treasury Bonds & & & Prime Rate & 5.5 \\ \hline 1 year & 2.54% & & Commercial Paper Avg, & \\ \hline 5 year & 2.47% & & & \\ \hline 10 year & 2.65% & & & \\ \hline \end{tabular} The company issued bond $1 billion with a cupon rate 7.55 on Feb15, 2000 The bonds will mature in 2030 \begin{tabular}{|l|r} \hline Selling Price & $136.38 \\ \hline yielding & 3.53% \\ \hline \end{tabular}