Oberon inc has a 30 million face value 12-year bond issue


Oberon, Inc., has a $30 million (face value) 12-year bond issue selling for 99 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 30 million face value 12-year bond issue
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