Question
KatyDid Clothes has a $160 million (face value) 30-year bond issue selling for 103 percent of par that carries a coupon rate of 12 percent,
KatyDid Clothes has a $160 million (face value) 30-year bond issue selling for 103 percent of par that carries a coupon rate of 12 percent, paid semiannually.
What would be Katydid's before-tax component cost of debt? (Round your answer to 2 decimal places.)
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
