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Carmen Ltd. previously raised capital 5 years ago by selling $20 000 worth of bonds with flotation costs equal to 2% of the face value
Carmen Ltd. previously raised capital 5 years ago by selling $20 000 worth of bonds with flotation costs equal to 2% of the face value of the debt. If the coupon interest rate was 8% and the total term of the bonds was 15 years, what is the bonds approximate pre-tax cost? Group of answer choices
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