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1 You are considering the purchase of an AT&P bond with a 20% coupon rate annually. The bond will mature in 10 years. The bond

1 You are considering the purchase of an AT&P bond with a 20% coupon rate annually. The bond will mature in 10 years. The bond currently sells for 3867. Assume the company is subject to a 30% tax rate. What is the cost of debt of this company? Hint: face value - $1000, PIYR=1, solve for WYR first. 16.494% 16.454% 15.208% 14.000% Ono enough information

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