Question: QUESTION 3 0.5 points (Extra Credit) Save Answer J&J Manufacturing issued $1,000, 30-year bonds 4 years ago at a coupon rate of 12% compounded semiannually.

QUESTION 3 0.5 points (Extra Credit) Save Answer J&J Manufacturing issued

QUESTION 3 0.5 points (Extra Credit) Save Answer J&J Manufacturing issued $1,000, 30-year bonds 4 years ago at a coupon rate of 12% compounded semiannually. The bonds are currently selling for $1,150 each. J&J's marginal tax rate is 40%. Calculate cost of debt. (Round to nearest whole percentage) a. 7.2% b. 5.2% c. 6.2% d. 8.2% QUESTION 4 0.5 points (Extra Credit) Save Answer is money owed by national governments. a. International debt b. Financial debt c. Sovereign debt d. Federal equity

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