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Question 24 Birds and Yards has 10-year bonds outstanding that carry an annual coupon of 8 percent. The bonds mature in 7 years and are
Question 24
Birds and Yards has 10-year bonds outstanding that carry an annual coupon of 8 percent. The bonds mature in 7 years and are currently priced at 108.4 percent of face value. What is the firm's pre-tax cost of debt?
A. 6.47 percent
B. 6.82 percent
C. 7.34 percent
D. 7.70 percent
E. 8.23 percent
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