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A firm has a bond outstanding with a coupon rate of 6 percent and semiannual payments. The bond currently sells for $900 and matures in
A firm has a bond outstanding with a coupon rate of 6 percent and semiannual payments. The bond currently sells for $900 and matures in 20 years. The face value is $1,000. What is the company's pretax cost of debt?
3.47%
6.93%
7.25%
6.98%
6.54%
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