Q: Estimate cost of capital.

2. Suppose it is July 2004. Estimate cost of capital for a 5-year project with market risk B = 1.2. assume expected market return is 10% U.S. Treasury Security Yield Curve Interest Rate, in Percent 5.00 4.00 +July 30, 2004 2.68 3.00 2.13 1.77 2.00 1.00 0.00 + 3-months 6-months 1-year 2-years 5-years 10-years Maturity of Treasury Securities Soros Federal Reserve Box H.15 Statistical Re Bond v oulon bosh constant matuny