Question
Ausel's Furniture Stores has bonds outstanding that mature in 11 years, have a 7 % coupon, and pay interest annually. These bonds have a face
Ausel's Furniture Stores has bonds outstanding that mature in 11 years, have a 7 % coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,002. What is the company's pre-tax cost of debt?
|
| 6.65 % |
|
| 6.70 % |
|
| 7.20 % |
|
| 7.35 % |
|
| 7.50 % |
|
| None of the above |
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Financial Economics
Authors: Frank J. Fabozzi, Edwin H. Neave, Guofu Zhou
1st Edition
0470596201, 9780470596203
