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Expected demand and the average bond

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A company that plans to finance a new investment with a five-year bond will pay an annual coupon rate of 18% on a nominal value of $ 1,000. However, at the time of issuance, there was less expected demand and the average bond price was 923.50TL. According to this, what is the actual borrowing cost of the firm?

Reference no: EM132554487

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