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On 1/1/2016 Assume that co issues 8% $200,000 bonds, due in five years for 184,836.64. the interest is paid annually at the end of each

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On 1/1/2016 Assume that co issues 8% $200,000 bonds, due in five years for 184,836.64. the interest is paid annually at the end of each year, the market rate is 10% assume that the company uses the effective rate method for amortizing the discount or premium, the interest expense for the year 2017 is : Select one: a. 16,000 b. 14,786.93 C. 18,483.66 d. 16,732.03 Cost of capital is Select one: a. the coupon rate of debt b. the average cost of the firm's assets O c. the rate of return that must be earned on additional investment if firm value is to remain unchanged od a hurdle rate set by the board of directors

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