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1. Advance, Inc. is trying to determine its cost of debt. The firm has issued bonds with face value of $1,000 which is currently selling
1. Advance, Inc. is trying to determine its cost of debt. The firm has issued bonds with face value of $1,000 which is currently selling at $1,050. This bond pays a coupon of 8 percent semiannually and has a maturity of 12 years. What is the pretax cost of debt? What is the after tax cost of debt, if the tax rate is 21 percent
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