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Akeya Equipment has 120,000 non-callable semiannual bonds outstanding with a 8 percent coupon interest and par value of $1,000. The bonds have 15 years to
Akeya Equipment has 120,000 non-callable semiannual bonds outstanding with a 8 percent coupon interest and par value of $1,000. The bonds have 15 years to maturity and sells for 95 percent of the par. The companys average tax rate is 35%. What is the pre-tax cost of debt (RD)?
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