Digital Access Inc. needs $$400,0000$ in funds for a project.

a$)$ With a compensating balance requirement of $20$ percent, how much will the firm need to borrow?

b$)$ Given your answer to part a and a stated interest rate of $9$ percent on the total amount borrowed, what is the effective rate on the $$400,000$ actually being used?

The Pioneer Petroleum Corporation has a bond outstanding with an $$85$ annual interest payment, a market price of $$800,$ and a maturity date in five years. Find the following:

a$)$ The coupon rate.

b$)$ The current rate.

c$)$ The yield to maturity.