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Problem:

Use the information below to determine the before tax cost of debt financing of bond T

Selling Price of the Bond - $1086
Number of years to maturity- 12
Annual Coupon rate- 6.92%
Par Value - 1,000
Flotation cost- $3.40

Required:

Question: What is the before tax cost of debt?

Note: Explain the solution in detail.

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Category:- Basic Finance
Reference No.:- M91174789

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