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Determine the cost of bonds

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Reference no: EM132998736

Question - Company X issues 11% bonds of INR. 100 for an amount aggregating INR. 200,000 at 10% premium, redeemable at par after 5 years. Corporate tax rate is 35%. Determine the cost of bonds?

a. 5.20%

b. 6.00%

c. 5.00%

d. 4.90%

Reference no: EM132998736

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