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XYZ Company has issued 30-year, semi-annual bonds that have a 5 percent coupon. The face amount of each bond at the time of issue was
XYZ Company has issued 30-year, semi-annual bonds that have a 5 percent coupon. The face amount of each bond at the time of issue was $1,000. These bonds are currently selling for 112% of face value. What is the company's pre-tax cost of debt? Select one: a. 3.98 percent b. 4.42 percent c. 4.29 percent d. 3.56 percent e. 2.45 percent
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