1. Consider a corporate bond maturing on April 14, 2025 witha. coupon rate of 5% and yield of 6%. What is the clean price of the bond on July 23, 2018?
a. 945.22
b. 946.13
c. 958.88
d. 1,000.00
2. Which of the follwoing is TRUE about a firm with no debt financing?
A. return on equit=cost of debt
B. return on equity=WACC
C. cost of equity=coupon rate
D. cost of debt=WACC