Oberon inc has a 10 million face value 8-year bond issue, Financial Management

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Oberon inc has a 10 million face value 8-year bond issue

Oberon, Inc., has a $10 million (face value) 8-year bond issue selling for 96 percent of par that pays an annual coupon of 8.00 percent. What would be Oberon’s before-tax component cost of debt? (Round your answer to 2 decimal places.)

Cost of debt %

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Financial Management: Oberon inc has a 10 million face value 8-year bond issue

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Financial Management: Oberon inc has a 10 million face value 8-year bond issue

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