1. Marble Co. issued 10-year, 8 percent semiannual bonds. The bonds currently sell at 110 percent of face value (face value is $1,000). What is the firm's aftertax cost of debt if the tax rate is 20 percent?
3.31 percent
4.69 percent
5.29 percent
6.62 percent
2. Systematic risk is:
also called firm-specific risk.
a risk that affects a large number of assets.
also called diversifiable risk.
the total risk inherent in an individual security.