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Rancher Inc. issued twenty-year, 4 percent semiannual coupon bonds at par (par value is $1,000). The bond price is quoted at 92.5% of the par.
Rancher Inc. issued twenty-year, 4 percent semiannual coupon bonds at par (par value is $1,000). The bond price is quoted at 92.5% of the par. What is its pre-tax cost of debt?
| 2.29 percent | |
| 4.58 percent | |
| 1.91 percent | |
| 3.46 percent |
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