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Company A issued debt five years ago at a cost of 10%. It can issue debt today at 5% since interest rates have come down.

Company A issued debt five years ago at a cost of 10%. It can issue debt today at 5% since interest rates have come down. What is the cost of debt for Company A?

a) 10% b) 5% c) 5% (10%-5%) d) 15% (10% + 5%)

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