1. Apple's 9 percent annual coupon bond has 10 years until maturity and the bonds are selling in the market for $1,190. If the firm's after-tax cost of debt is 5 percent, what was the firm's tax rate?
2. If a corn grower is expecting a harvest in three months, should she buy or sell a forward contract on corn? State a cost as well as a benefit to this farmer from trading a forward contract.
3. Consider a fairly illiquid futures contract that has not traded for days. How would the exchange come up with its settlement price?