Questions 21 and 22

21. When a company issues 5 year debt in a public market transaction, the interest rate the company will pay is a. Set by the company b. Set by bank lenders c. Based on the 5 year treasury rate at the time of the issuance only d. Based on the 5 year treasury rate of time of issuance plus a credit premium 22. The credit premium a company will be required to pay is based on a. The company's creditworthiness b. The price of a company's stock c. The US treasury interest rate curve d. None of the above