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The 10-year Treasury rate is 2.15 percent, and a firms credit rating is BBB. The firm has had many bond issues in the past, and
The 10-year Treasury rate is 2.15 percent, and a firms credit rating is BBB. The firm has had many bond issues in the past, and decides to raise $100 million by selling 10-year bonds. At present, 10-year BBB bonds are selling for 225 basis points above the 10-year Treasury rate. What is the cost of borrowing
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