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What is the cost of debt for a company with a current bond issue prices at $1,250.00 with a coupon rate of 12% paid semi-annually,

What is the cost of debt for a company with a current bond issue prices at $1,250.00 with a coupon rate of 12% paid semi-annually, and 15 years to maturity. (Interest is tax deductible and the corporate tax rate is 40%).

9.48%

5.36%

8.76%

6.54%

16.3%

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