Question: GM issued a 5-year fixed rate note with a 7.625% coupon payment (assume annual payments) and a $400M face value. They received $399.9M minus commissions

GM issued a 5-year fixed rate note with a 7.625% coupon payment (assume annual payments) and a $400M face value. They received $399.9M minus commissions and expenses. What is the cost of debt? Hint: find the discount rate such that the PV of the coupon payments and face value equals the $399.9M minus commissions and expenses

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