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A firm has three types of bonds outstanding Its most senior bonds have YTM=5%. The bonds with intermediate seniority have YTM=6% The most junior bonds

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A firm has three types of bonds outstanding Its most senior bonds have YTM=5%. The bonds with intermediate seniority have YTM=6% The most junior bonds have YTM=9% The market value of each type of bonds is $1M Find the best estimate for the firm's cost of debt that you would use WACC calculation The bond value is $1000

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