What is the yield to maturity on these bonds

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1. Yield to maturity (YTM) on debt issues with risk comparable to the Sonar Company is currently 9.1%. Sonar has issued debt two years ago with a YTM of 8.00%. Sonar's common stock beta is 1.15, and its tax rate is 34. The appropriate rate for Sonar to use for debt in estimating its WACC is what rate? Show your answer as a percentage, rounded to two decimal places.

2. Radoski Corporation's bonds make an annual coupon payment of 5% every year. The bonds have a par value of $1,000, a current price of $1070, and mature in 12 years. What is the yield to maturity on these bonds? Provide the correct excel function along with inputs for credit.

Reference no: EM132007411

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