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On average in the U.S., during the past 117 years, the return on U.S. Treasury bills has exceeded the return on Treasury bonds. Select one:
On average in the U.S., during the past 117 years, the return on U.S. Treasury bills has exceeded the return on Treasury bonds. Select one: True False Nico Trading Corporation is considering issuing long-term debt. The debt would have a 30-year maturity and a 10 percent coupon rate. In order to sell the issue, the bonds must be underpriced at a discount of 5 percent of face value. In addition, the firm would have to pay flotation costs of 5 percent of face value. The firm's tax rate is 21 percent. Given this information, the after-tax cost of debt for Nico Trading would be Select one: a. 11.17% O b. 2.34% O c.7.26% d. 8.8298
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