1. Collins Corporation is planning to sell a new $1,000 face value, 11% coupon, 20-year...
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1. Collins Corporation is planning to sell a new $1,000 face value, 11% coupon, 20-year bond issue to investors who require a 11% rate of return. There would be no flotation cost, and Collins pays income taxes at a 21% rate. What is the cost of the new issue? a) 11.00% b) 8.69% c) 2.31% d) 21.00%
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