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March 31, 2015

Homework Help: cost of debt

Posted by Anonymous on Saturday, November 9, 2013 at 4:39pm.

Peyton’s Colt Farm issued a 30-year, 7 percent semiannual bond 7 years ago. The bond currently sells for 94 percent of its face value. The company’s tax rate is 35 percent. What is the pre tax cost of debt?

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