Question: Trying to learn how to do it in excel specifically so please show functions! 9. You are considering buying the bonds of a very risky

Trying to learn how to do it in excel specifically so please show functions!Trying to learn how to do it in excel specifically so please

9. You are considering buying the bonds of a very risky company. A bond with a $100 face value, a 1-year maturity, and a coupon rate of 22% is selling for $95. You consider the probability that the company will actually survive to pay off the bond 80%. With 20% probability, you think that the company will default, in which case you think that you will be able to recover $40. a. What is the expected return on the bond? b. If the company has cost of equity r-25%, tax rate Tc-35%, and 40% of its capital structure is equity, what is its weighted average cost of capital (WACC)

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