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April 16, 2014

Homework Help: business finance

Posted by Anonymous on Wednesday, September 12, 2012 at 12:19am.

A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.5%. The bonds have a current market value of $1123 and will mature in 10 years. The firm's marginal tax rate is 34%.

The cost of capital from this bond debt is _____ %

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