There are two bonds, one is a 4% coupon bond issued by General Motors, and the other is a 4.346% coupon bond issued by Ford. Please use this information to complete the following tasks. 1) compute the YTM for both bonds. 2) What is the after-tax cost of debt for Ford given its effective tax rate for 2018 was 15%?

3/19/2019 Bonds Detail Market Data Investors > Market Data > Bonds > Bond Detail Last Updated: 03/19/2019 Company Information Bond Detail Lookup Symbol: GM4181482 GO Equities and Options Bonds GENERAL MT ADD TO WATCHLIST Mutual Funds Coupon Rate Maturity Date Symbol CU SIP Next Call Date Callable GM4181482 37045VAG5 Yes watchlist 4.000% 03/19/2025 Last Trade Price Last Trade Yield Last Trade Date US Treasury Feedback $98.13 ???% 03/19/2019 Yield FAQ Trade History Prospectus Subscribe to Notices Price/Yield Chart Classification Elements Price Chart Yield Chart Bond Type JS Corporate Debentures 1104/2014 - 03/19/20 19 Zoom: 50 1M 3M YTD 1Y 3Y 5Y 10Y Max Debt Type Senior Unsecured Note Price Industry Group Industrial Price $ Industry Sub Group Manufacturing Sub-Product Asset CORP 104.00 Sub-Product Asset Type Corporate Bond State 100.00 Use of Proceed: Security Code 96.00 Special Characteristics Medium Term Note 92.00 Issue Elements 88.00 Offering Date 11/04/2014 2015 2016 2017 2018 Dated Date 11/12/2014 First Coupon Date 04/01/2015 Credit and Rating Elements Original Offering* $500,000.00 Amount Outstanding $500,000.00 Moody's @ Rating Baa3 (01/30/2017) Series Standard & Poor's Rating BBB (01/10/2017) Issue Description TRACE Grade Investment Grade Project Name Default Payment Frequency Semi-Annual Bankruptcy N Day Count 30/360 Insurance Form Book Entry Mortgage Insurer Depository/Registration DTC, Clearstream, Pre-Refunded/Escrowed Eurodear Additional Description Senior Unsecured Note Security Level Senior Collateral Pledge Capital Purpose Put & Redemption Provisions *dollar amount in thousands Call Date Call Price Call Frequency Continuously Bond Elements Put Date Put Price Put Frequency Original Maturity Size 500,000.00 Amount Outstanding 500,000.00 Size* Yield at Offering 4.09% Price at Offering $99.27 Coupon Type Fixed Escrow Type *dollar amount in thousands dy's . Moody's Investors Service is a registered credit rating agency that issues credit ratings for selected corporate bonds reported on TRACE. These ratings are Moody's current opinions of Moody's ratings are not recommendations to purchase, hold or sell securities, nor do they comment on the suitability of an investment for any particular investor or the market value of such securities. Visit our website at moodys. com for complete legal terms and conditions governing use of Moody's credit rating information.@2019 Moody's@ Corporation, Moody's@ Investors Service, Inc., Moody's https://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C620023&symbol=GM4181482 1/23/19/2019 Bonds Detail Market Data Investors > Market Data > Bonds > Bond Detail Last Updated: 03/19/2019 Company Information Bond Detail Lookup Symbol: F4433681 GO Equities and Options FORD MTR CO DEL + ADD TO WATCHLIST Bonds Mutual Funds Coupon Rate Maturity Date watchlist 4.346% 9/19/2026 Symbol CU SIP Next Call Date Callable F4433681 345370CR9 09/08/2026 Yes Last Trade Price Last Trade Yield Last Trade Date US Treasury Feedback $91.36 ???% 03/19/2019 Yield FAQ Trade History Prospectus Subscribe to Notices Price/Yield Chart Classification Elements Price Chart Yield Chart Bond Type JS Corporate Debentures 12/05/2016 - 03/19/20 19 Zoom: 50 1M 3M YTD 1Y 3Y 5Y 10Y Max Debt Type Senior Unsecured Note Price Industry Group Industrial Price $ Industry Sub Group Manufacturing Sub-Product Asset CORP 105,00 Sub-Product Asset Type Corporate Bond State 100.00 Use of Proceed: Security Code 95.00 Special Characteristics Medium Term Note 90.00 Issue Elements 85.00 12/05/2016 2017 2018 2019 Offering Date Dated Date 12/08/2016 First Coupon Date 06/06/2017 Credit and Rating Elements Original Offering* $1,500,000.00 amount Outstanding* $1,500,000.00 Moody's@ Rating Baa3 (08/29/2018) Series Standard & Poor's Rating BBB (12/06/2016) Issue Description TRACE Grade Investment Grade Project Name Default Payment Frequency Semi-Annual Bankruptcy N Day Count 30/360 Insurance Form Book Entry Mortgage Insurer Depository/Registration DTC, Clearstream, Pre-Refunded/Escrowed Eurodear Additional Description Senior Unsecured Note Security Level Senior Collateral Pledge Capital Purpose Put & Redemption Provisions *dollar amount in thousands Call Date Call Price Call Frequency 09/08/2026 $100.00 Continuously Bond Elements Put Date Put Price Put Frequency Original Maturity Size 1,500,000.00 Amount Outstanding 1,500,000.00 Size* Yield at Offering 4.35% Price at Offering $100.00 Coupon Type Fixed Escrow Type *dollar amount in thousands Moody's@ - Moody's Investors Service is a registered credit rating agency that issues credit ratings for selected corporate bonds reported on TRACE. These ratings are Moody's current opinions of Moody's ratings are not recommendations to purchase, hold or sell securities, nor do they comment on the suitability of an investment for any particular investor or the market value of such securities. Visit our website at moodys. com for complete legal terms and conditions governing use of Moody's credit rating information.@2019 Moody's@ Corporation, Moody's@ Investors Service, Inc., Moody's https://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C667273&symbol=F4433681 1/2