Micro Spinoffs Inc. loaned 10 years at par value with an annual coupon rate of 8% a year ago. Today, the debt is selling at $1,280. If the firm's tax bracket is 21%, what is the percentage of debt cost? Assume a par value of $1,000. (Do not round up intermediate calculations. Enter your answer as a percentage, rounded to 2 decimal places.)

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To calculate the percentage of debt cost we need to calculate the current ... View the full answer