Determining the cost of capital from bond debt


A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 10.7%. The bonds have a current market value of $1,126 and will mature in 10 years. The firms marginal tax rate is 34%. What is the cost of capital from this bond debt?

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Accounting Basics: Determining the cost of capital from bond debt
Reference No:- TGS0517680

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