The firm can sell for $980 a 10-year, $1000 par bond paying annual interest at a 10%

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The firm can sell for $980 a 10-year, $1000 par bond paying annual interest at a 10% coupon rate. A flotation cost of 3% of the par value is required in addition to the discount of $20 per bond.

What is the cost of this debt?

Related Book For answer-question

Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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Posted Date: May 17, 2023 12:15 AM

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The firm can sell for $980 a 10-year, $1000 par bond paying annual interest at a 10%

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Principles Of Managerial Finance

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