6) Company B has a second debt issue on the market, a zero coupon bond with 6.3 years left to maturity. The yield to maturity (YTM) of these bonds is 8 %. The face value of the bond is $1000. Calculate the current bond price.

7) Refer back to previous two questions. If the market value of the 10-year bonds is $ 15 million and the market value of the zero coupon bond is $ 49 million (these are the two bond issues outstanding for the company B) what is the after tax cost of debt of company B? The tax rate is 30%. Express your answer as %.

8) Company Z stock currently sells for $ 43.6. The required return on the stock is 17 %. Company Z maintains a constant 10 % growth rate in dividends.

Calculate the most recent dividend.

9) Refer back to previous question.

Company Z stock currently sells for $ 43.6. The required return on the stock is 17 %. Company Z maintains a constant 10 % growth rate in dividends. Calculate Company Z dividend yield? Express your answer as %.