Suppose the General Tool Company issued a 30-year, 7 per cent bond 8 years ago. The bond

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Suppose the General Tool Company issued a 30-year, 7 per cent bond 8 years ago. The bond is currently selling for 96 per cent of its face value or

$960. What is General Tool’s cost of debt?

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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