QUESTION 6 20 Why are the interest rates of U.S. Treasury securities less than the interest rates of equivalent corporate bonds? O a. U.S. Treasury securities yield inflation adjusted interest rates. b. U.S. Treasury securities are widely regarded to be risk-free, O c. The U.S. government has a high credit spread. d. There is significant risk that the U.S. government will default QUESTION 16 A convenience store owner is contemplating putting a large neon sign over his store. It would cost $38.000 but is expected to bring an additional $17,500 of profit to the store every year for five years. Would this project be worthwhile if evaluated using a payback period of two years or less and if the cost of capital is 10%? O a. Yes, since the cash flows after two years are greater than the initial investment. O b. Yes, since it will pay back its initial investment in two years. c. No, since the value of the cash flows over the first two years are less than the initial investment. d. No, since the value of the cash flows into the store. in present dollars, are equal to the initial investment