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Kim's Convenience has outstanding corporate debt (face value of $1,000 per bond) that pays an 8.52% coupon rate semiannually and will mature in 23 years.

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Kim's Convenience has outstanding corporate debt (face value of $1,000 per bond) that pays an 8.52% coupon rate semiannually and will mature in 23 years. The bonds are currently trading at $708 each. If the firm's tax rate is 26%, what is the firm's effective cost of debt? Note - please calculate the effective annual rate (EAR) A) 4.58% B) 6.30% C) 12.76% D) 9.44% E) 9.18% Next Page Page 5 of 40

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