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Question 18 3 points avec Quirk Drugs sold an issue of 30-year $1,000 par value bonds to the public that carry a 10.85% coupon rate, payable semiannually. It is now 10 years later, and the current market interest rate is 11.00%. If market interest rate remains a 11.00% until Quirk's bonds mature, what will happen to the value of the bond over time? The bonds will sell at premium and rise in value until maturity. The bonds will sell at premium and fall in value until maturity. cc The bonds will sell at discount and fall in value until maturity The bonds will sell at par and fall in value until maturity, CE. The bonds will sell at discount and rise in value until maturity Question 19 & points Save Anm ABC Inc' bonds have a 7-year maturity, a 9.83% coupon rate compounded semiannually, and a par value of $1,000. The current market interest rate ir d. YTM) is 7.91%, based on semiannual compounding. What is the bond's price? Please round your answer to the second decimal without dollar sign. For example, 1234.12. Question 21 3 points Save Ans Based on current market values, Shawhan Supply's capital structure is 20% debt, 30% preferred stock, and 50% common stock. The required rate of return on each component is: debt -10% preferred stock 11% and common stock 18%. The margin tax rate is 40%. What is Shawhan Supply's weighted average cost of capital ( WACC) CA 15.00% CB 13.50% cc 14.30% Co 14.20 CE 13.00% Question 20 8 points Save Ana You are analyzing ABC stock and predicting the probabilities for different economic conditions next years and the corresponding return information as follows. Economic Condition Probability for Economic Condition ABC stock returns (HPR) Boom 0.10 0.18 Normal 0.06 -0.05 Recession 0.55 0.35 What is the expected rate of return for this ABC stock investment? Please round your answer to the fourth decimal. For example, 0.1234

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