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please 4. Eagle Air Inc. has decided to issue 3 year maturity , 16 % coupon bonds with a total nominal value of 300 million

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4. Eagle Air Inc. has decided to issue 3 year maturity , 16 % coupon bonds with a total nominal value of 300 million $. Due to the good reputation of the company the bonds were sold at 10 % premium and floatation costs will amount to 7 % of total nominal value. The pr The tax rate is 22 %. Compute the cost of this bond issue. Try 11 % first

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