Question
Freeze Systems has 20-year bonds outstanding with a coupon rate of 9 percent. Interest is paid annually. The face amount of each bond is $1,000.
Freeze Systems has 20-year bonds outstanding with a coupon rate of 9 percent. Interest is paid annually. The face amount of each bond is $1,000. What is the company's pretax cost of debt if the bonds currently sell for $800?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
