Question
The Almost-There Corp. sold a $1,000 par value, noncallable bond several years ago that now has 10 years to maturity and a 7.00% annual coupon
The Almost-There Corp. sold a $1,000 par value, noncallable bond several years ago that now has 10 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $925. What is the before-tax cost of debt?
Group of answer choices
3.87%
4.05%
5.93%
6.15%
8.11%
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
