1. The Pet Market has $1,000 face value bonds outstanding with 4 years to maturity, a coupon rate of 8 percent, annual interest payments, and a current price of $1100. What is the aftertax cost of debt if the tax rate is 40 percent?
2. The price of the enron 6.5% august 1,2002 bond declined from 102.4134 on october 15,2001 to 17.7177 december 14,2001. over the same period the price on enron shares declined from $33.17 on october 15 to 63 cents on December 14. What was the Promised YTM on enron 6.5% Aug 2 on October 15, 2001?