A corporation needs to raise $$100$M today. lt can issue a $10-$year $3\%-$coupon bond at par. Or it can issue a $5-$year $2\%-$coupon bond at par and issue another $5-$year bond in $5$ years. The firm expects the yield on its $5-$year bonds to be $3\mathrm{.}50\%$ in $5$ years. Assuming the firm will not default, which strategy has lower expected interest costs?

Issuing the $10-$year bond

Issuing the $5-$year bonds sequentially

The expected costs are the same

Not enough information

Based on the same information as in the prior question, which strategy provides the firm with the greatest certainty in its interest costs?

Issuing the $10-$year bond

Issuing the $5-$year bonds sequentially

The risks are the same

Not enough information