A firm has bonds issued with 8% coupon paid annually, 15 years to maturity,and priced...
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Finance
A firm has bonds issued with 8% coupon paid annually, 15 years to maturity,and priced at 102.5% to face value. If the tax rate is 35%, what is the effective cost of debt?
A.
5.0%
B.
5.2%
C.
5.3%
D.
8.0%
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