AaBDCCDC CABECED.Date AaBbco. Ad Nama No parties Heading Honda tvo Question 4 You have an opportunity to buy a perpetuity that pays $70 a year forever starting a year from now for $1.200. What interest rate makes this a fair price? A. 58 8.5.8% C. 85% D. 8.5% Question 9 A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 15 years and has a current market price of $925. There are no flotation costs. If the corporate tax rate is 35%, what is the after-tax cost of debt capital? A. 4.45% B.3.74% C 5.29 D. 6.78% Question 10 Which of the following statements regarding timelines is FALSEY A Timelines are an important first step in organizing and then solving a financial problem B. The time value of money is the idea that a dollar in the future is worth more than a dollar today C. A timeline is a graphical representation of the site and timing of the cash flows. D. We can represent any investment decision on a timeline stream of cash flow