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Parkland has issued ten year maturity bonds at par, therefore the bonds have a price of $1,000 per $1,000 face value, and it is paying
Parkland has issued ten year maturity bonds at par, therefore the bonds have a price of $1,000 per $1,000 face value, and it is paying annual coupon payments with a coupon rate of 6%. What would be the Parkland Inc.'s cost of debt based only on this bond issue if it is paying taxes at a 21% rate? Please answer this as a percent calculated to two places. |
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