If a firm does not have publicly traded debt and therefore does not have a yield to maturity as an estimate for its cost of debt, a common practice is to estimate the cost of debt by adding a premium to the rate on:

Which of the following are the premium payments for a Universal life policy NOT used for?

A) Death benefits B) Cash value C) Loading costs D) Separate account investments

Whitts BBQ would like to issue some 10-year, semiannual coupon bonds at par. Comparable bonds have a current yield of 9.16 percent, an effective annual yield of 9.68 percent, and a yield to maturity of 9.50 percent. What coupon rate should Whitts BBQ set on its bonds?

A. 9.00 percent B. 9.16 percent C. 9.50 percent D. 9.68 percent E. 10.00 percent