(1) a publicly placed 50 million bond issues. Issuance cost are 1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20 year life. (2) a 50 million private placement with a large pension fund. Issusnace cost are 500,000.00, the bond has a 9.25% annaul coupon, and the bond has a 20 year life. What alternative has the lower cost (annual percentage yield)?

(1) a publicly placed 50 million bond issues. Issuance cost are 1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20 year life. (2) a 50 million private placement with a large pension fund. Issusnace cost are 500,000.00, the bond has a 9.25% annaul coupon, and the bond has a 20 year life. What alternative has the lower cost (annual percentage yield)?