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April 27, 2015

Homework Help: Business Finance

Posted by Jay on Wednesday, May 8, 2013 at 7:36pm.

A bond has a $1,000 par value (face value) and a contract or coupon interest rate of 10.1%. The bonds have a current market value of $1,126and will mature in 10 years. The firms marginal tax rate is 34%.
The cost of capital from this bond debt is ____%

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