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A company has $100,000 bonds outstanding paying 5 percent annual coupon. The bond has a maturity of 4 years and is trading at 96.55% of
A company has $100,000 bonds outstanding paying 5 percent annual coupon. The bond has a maturity of 4 years and is trading at 96.55% of the face value. What is the companys before-tax cost of debt?
A) 4.5%
B) 6.0%
C) 7.0%
D) 8.2%
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