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Calculate diycost of debt

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DIY Inc. has two debts. The first one is a perpetual debt that has 8.8% interest and is trading at 113% of par. The second one is an 18-year debt that is trading to yield 10.8%. If the market value of the second debt is 86% of the market value of the first debt, calculate DIY's cost of debt. (Answer in decimal)

Reference no: EM133067778

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