Problemlydias inc has a 6 bonds outstanding that mature in, Ask an Expert

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Problem:

Lydias, Inc., has a 6% bonds outstanding that mature in fourteen years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $1,200 each.

Requirement:

Question: What is the firm's pretax cost of debt now?

2.05%
2.37%
3.25%
4.10%
4.74%

Note: Show all workings.

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Category:- Basic Finance
Reference No.:- M91175244

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