Problem 1 A company issues 15-year, $1,000 par-value bonds, with a coupon rate of 5%.
Problem 1 A company issues 15-year, $1,000 par-value bonds, with a coupon rate of 5%. The bonds are sold for $619.70. The tax rate is 30%. Compute the cost of debt before taxes and after taxes. Problem 2 Suppose a…