The Bet-r-Bilt Company has a 5-year bond outstanding with a 4.35 percent coupon. Interest payments...
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Accounting
The Bet-r-Bilt Company has a 5-year bond outstanding with a 4.35 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 94 percent of its face value. What is the company's pre-tax cost of debt?
11.0 percent
4.4 percent
5.7 percent
8.8 percent
2.8 percent
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