Your firm has bonds outstanding with five years until maturity and a $1,000 par value. The bonds are currently trading at $1,003 per bond and pay a 4% coupon rate. The bonds have six years until maturity. What is the bond's before-tax annual cost of debt? 1.97% 3.93% 3.87% O None of the Above Your firm has a beta of 0.90, and Tbills currently yield 2%. The S&P 500 currently yields 15%. What is the firm's cost of equity? O 15.50% 13.50% 13.70% O None of the Above When the firm selects new projects, the expected return on each project should exceed the firm's hurdle rate. True False