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Question 8 Bond of $ 1000 par value issued at $996. Coupon rate 3.8%, coupon paid at the end of every year. Bond will be

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Question 8 Bond of $ 1000 par value issued at $996. Coupon rate 3.8%, coupon paid at the end of every year. Bond will be repaid at $ 1002 i.e. $ 2 on redemption of the bond. Bond will mature after 5 years. The corporate tax rate is 30%. Calculate cost of bond

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