Assume your investment horizon is $2$ years.

Current Yields on U$.$S$.$ Treasuries Current Yield on Publicly Traded Company Debt $($BBB$+)$

$3$ month $3\mathrm{.}59\%$ Coupon $5\mathrm{.}75\%6\mathrm{.}75\%7\mathrm{.}75\%$ Annual

$6$ month $3\mathrm{.}59\%$ Price $96\mathrm{.}797\mathrm{.}595\mathrm{.}80$

$1$ year $3\mathrm{.}59\%$ Year until Maturity $2510$

$2$ year $4\mathrm{.}88\%$ Face Value $100\mathrm{.}00100\mathrm{.}00100\mathrm{.}00$

$10$ year $5\mathrm{.}34\%$

$20$ year $5\mathrm{.}74\%$

Market Value of Equity $($mil$$)9,000$ Equity Risk Premium $7\mathrm{.}50\%$

Market Value of Debt $($mil$$)1,000$ Company Beta $1\mathrm{.}1$

Effective Tax Rate $30\mathrm{.}00\%$

We

Wd

Cost of Equity $($Re$)$

Cost of Debt$($Rd$)$

WACC $($We$*$Re $+$ Wd$*$Rd$*(1-$t$))$