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Suppose a corporation issued a 2 0 - year annual, 7 percent bond, 1 0 years ago. The bond is currently selling for 9 2

Suppose a corporation issued a

20 -

year annual,

7

percent bond,

10

years ago. The bond is currently selling for

92

percent of its face value, or $

920 .

What is the corporation

s cost of debt? SHOW YOUR WORK WITH THE YTM

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