The Bet-r-Bilt Company has a 5-year bond outstanding with a 3.90 percent coupon. Interest payments are paid
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The Bet-r-Bilt Company has a 5-year bond outstanding with a 3.90 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 94 percent of its face value. What is the company's pre-tax cost of debt?
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
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