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8. Suppose your firm just issued a 20-year, $1000 par value bond with semiannual coupons. The coupon interest rate is 6%. The bonds sold for

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8. Suppose your firm just issued a 20-year, $1000 par value bond with semiannual coupons. The coupon interest rate is 6%. The bonds sold for par value, but flotation costs amounted to 7% of the price. You have a 21% corporate tax rate. What is your firm's cost of debt? a) 5.5% b) 6.00% c) 4.74% d) 5.09% e) 5.24%

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