1. Stringer Bell has $1,200 par value bonds outstanding at 12 percent interest. The bonds will mature in 30 years. Compute the current price of the bonds if the present yield to maturity is:
a. 8 percent.
b. 11 percent.
c. 15 percent.
2. The before-tax cost of debt is_____ the after tax cost of debt.
A. The same as
B. Higher than
C. Lower than