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- 4 of 4 ID: FMT Gertrude's Great Gloves issue bonds with a face value of $1,000, paying interest at j2 = 8.75%, redeemable in

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- 4 of 4 ID: FMT Gertrude's Great Gloves issue bonds with a face value of $1,000, paying interest at j2 = 8.75%, redeemable in exactly 13 years. An investor purchases the bond for $1,102.67. Calculate the cost of debt (2) for Gertrude's Great Gloves. You may give your answer as a percentage per annum to the nearest percent or use linear interpolation or a financial calculator to give a more accurate result. Cost of debt = % pa

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