1. Your firm has just issued a 15-year $1,000.00 par value, 10% annual coupon bond for a net price of $964.00 a) The semi-annual YTM is ____% b) Annual YTM is _______%. c) What is the yield to maturity?

2. Your firm has just issued a 10-year $1,000.00 par value, 6% coupon quarterly bond for a net price of $950.00. What is the annual yield to maturity?

3. Your firm has just issued a 10-year $1,000.00 par value, 6% coupon semiannual bond for a net price of $964.00. The firm's tax rate is 28%.

a) Annual YTM ~ cost of debt is _____%. b) The after tax cost of debt is _________%.

4. Your firm wishes to issue a 20 year bond, annual coupon of 6%, and the price has been determined to be RM880. The floatation cost of the issuance is 2% of the selling price. The tax rate is 24%.

a) The net selling price is RM________. b) Annual YTM is ________% c) After tax cost of debt is ______%.