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The bond currently sells for 92 percent of its face value

Himiny's Cricket Farm Issued a 28-year, 13 percent semiannual bond 3 years ago. The bond currently sells for 100 percent of its face value. The company's tax rate is 33 percent. What is the pretax cost of debt?

Himiny's Cricket Farm Issued a 27-year, 11 percent semiannual bond 2 years ago. The bond currently sells for 92 percent of its face value. The company's tax rate is 40 percent. What is the aftertax cost of debt?

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Finance Basics: The bond currently sells for 92 percent of its face value

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