D_(C)=0.1187

\

=0.64

\ Hydro Systems has 15-year bonds outstanding with a coupon rate of 6 percent. Interest is paid semiannually. The face amount of each bond is

$1,000

. What is the company's pretax cost of debt if the bonds currently sell for

$1,080

?

DC=0.1187 =0.64 (6.) Hydro Systems has 15 -year bonds outstanding with a coupon rate of 6 percent. Interest is paid semiannually. The face amount of each bond is $1,000. What is the company's pretax cost of debt if the bonds currently sell for $1,080