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Cost of debt financing to the firm-xyz inc

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Reference no: EM132504514

XYZ Inc. plans a bond issue for the near future and wants to estimate its current cost of debt capital. The firm's chief financial officer has determined that a 8-year maturity bond with a $1,000 face value and 9 percent coupon can be sold to investors for net proceeds of $861. What is the cost of debt financing to the firm?

Reference no: EM132504514

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