1. Determine the cost of long-term debt, and explain why the after-tax cost of debt is the relevant cost of debt. How does NYS dormitory Authority uses these in their operations?
2. What is the link between the safety net provided by the government to the financial industry and the relatively heavy regulation of the same industry by the government?
3. You are considering an investment that has a nominal annual interest rate of 9.94 percent, compounded semiannually. Therefore, the effective annual rate, or EAR (annual percentage yield) is.