About estimating before-tax cost of debt

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Reference no: EM131338015

Assume a Corporation a single bond outstanding with the following facts:

a. Par Value = 100,000

b. Annual Coupon = $8,000

c. Current Market Price = $114,500

d. Years to Maturity = 6

Demonstrate how you would go about estimating before-tax cost of debt for corporation. What is their implied cost of debt?

Reference no: EM131338015

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