1. A company has a 25% tax rate and is planning to issue bonds with a 9% yield to maturity. What is its after-tax cost of debt?
2. How much will $20,000 grow into in 5 years if you earn 10%? Assume quarterly compounding.
3. Assuming an interest rate of 3%, what would be the present value of $15 million to be received in 5 years?