X-Co's bond has a coupon rate of 6%/year payable semiannually. The bond is currently selling for 99 and has 10 years to maturity, A) Is its market rate > or < 6%? B) Is the market rate a lot or a little > or < 6%? Note: “>” is greater than and “<” is less than. 1. 2. X-Co is offering a unique perpetual bond that will pay $30 next year, and the $30 will grow at 1.0%/year in the future. If the market rate is 4.15%/year, what is its current market price? 3. Last year X-Co's sales fell 10%, but its net profit fell 69%. In a few words, what is the most likely explanation for this disparity?

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