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Firm A has a 5% coupon bond that matures in 15 years and has a $100 face value. The risk-free rate is 3%, the default

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Firm A has a 5% coupon bond that matures in 15 years and has a $100 face value. The risk-free rate is 3%, the default risk premium is 2% and the maturity risk premium is 1%. The bond is a premium bond. The bond is a discount bond. The before cost of debt is 5%. The before cost of debt is 6%

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