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October 25, 2014

Homework Help: Finance

Posted by jay on Sunday, January 15, 2012 at 12:14pm.

A bond that has a $1,000 par value (face value) and a contract interest rate of 11.9. The bonds have a current market value of $1,120 and will mature in 10 years. The firm's marginal tax is 34%.
What is the cost of capital from this bond debt?

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