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Suppose your project is worth $888 with a probability of 0.88 and $509 with a probability of 1-0.88. The appropriate cost of capital is 8.5%
Suppose your project is worth $888 with a probability of 0.88 and $509 with a probability of 1-0.88. The appropriate cost of capital is 8.5% for the overall project. If you want to raise $676 today and promise to bond investors a rate of return of 6.3%, what's the expected rate of return of this bond? exact number with decimals
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