Battan inc. is considering issuing a bond with a face value, Ask an Expert

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Battan Inc. is considering issuing a bond with a face value of $ 1,000, which will pay an interest rate of 8%. The company expects that investors paid $ 910 for the 20-year bond. The flotation cost of the bond is $ 42. What is the cost of debt of the company?. Assume a 34% tax rate. is 9.5% or 6.3%

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