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5. Company has a bond issue outstanding with ten years to maturity. These bonds have a $1,000 face value, a 7 percent coupon, and pay

5. Company has a bond issue outstanding with ten years to maturity. These bonds have a $1,000 face value, a 7 percent coupon, and pay interest semi-annually. The bonds are currently quoted at 89 percent of face value. What is Ernst's pre-tax cost of debt?

what is

PV?

FV?

N?

PMT?

I/Y?

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