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The debt issued by Coastal Construction has a coupon rate of 5% and a yield to maturity of 6.2%. The company is in the 25%
The debt issued by Coastal Construction has a coupon rate of 5% and a yield to maturity of 6.2%. The company is in the 25% tax bracket. Coastal Constructions effective cost of debt is:
- 3.75%
- 4.65%
- 5.00%
Please help me with this answer and how to solve for the answer
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