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A company has a bond that has a $ 1000

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Question;A company has a bond that has a $ 1000 (face value of bond) and a contract or coupon interest of 11.6%.The company's bond has a current market value of $ 1,125 and will mature in 10 years. The company's marginal tax rate is is 34%What is the cost of capital from this bond debt?

 

Paper#50848 | Written in 18-Jul-2015

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