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Question 26 - The firm has bonds outstanding that mature in four years. The par value of each bond is $1000, the coupon rate is

Question 26 - The firm has bonds outstanding that mature in four years. The par value of each bond is $1000, the coupon rate is 8%, paid annually, and the current price is $988. The firms tax rate is 40%. What is the debt holders required rate of return?

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