What is the yield to maturity on the firm's bonds? (1 points)

b. What is the firm's pre-tax cost of capital on this bond? (1 points)

c. What is the firm's after-tax cost of capital on this bond? (1 points)

d. How many bonds does the firm need to issue? (1 points)

e. The firm also has this option to get a 20-year loan of 90,000,000 from a bank with annual payments of 8,500,000 for 20 years. Should the firm get this loan instead of issuing bonds? Why? (1 points)

2) A company is going to finance a $90,000,000 project. The first option is to issue $1,000 par value bond that pays a 7% annual coupon. The company expects investors to pay $942 for the 20-year bond. The expected flotation cost per bond is $42, and the firm is in the 34% tax bracket