26) Which of the following is not an advantage of private debt placement A) Faster to raise money. B) Reduces flotation costs. C) Offers financing flexibility. D) Interest costs are higher than public issues.

27) Maturity risk premium is additional return required by investors to compensate for greater risk of price fluctuations on those caused by interest rate changes. A) True. B) False.

28)Opportunity cost is the difference between rate of return on the best and worst alternatives. A) True. B) False.