The risk-free rate of return is 5%. The market risk premium is 5%. The beta of Mondelez International is 1.1. The debt-to-equity ratio of Mondelez International is 0.5. The tax rate of Mondelez International is 21%. calculate WACC?

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.