10.38: Which of the following companies will have the lowest cost of borrowing,...
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Accounting
10.38:
Which of the following companies will have the lowest cost of borrowing, assuming all four companies issued $500,000 in six-year bonds with a contractual interest rate of 8 percent?
A : Company 2, which sold its bonds at 97
B : Company 1, which sold its bonds at 92
C : Company 4, which sold its bonds at 107
D : Company 3, which sold its bonds at 102
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