Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes

Question:

Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. The marginal tax rate is T = 0.35.
a. A $1000, one-year loan at 8%.
b. A five-year loan of $1000 at 8%. Assume no principal is repaid until maturity.
c. A $1000 at 7%.

Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...