Issued a corporate bond with face value

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Benge Automotive issued a corporate bond with a face value of $1,000, with a 10% annual coupon rate paid semiannually. The bond matures in 12 years and sells at a price of $1,080. What is the component cost of debt for use in the WACC calculation? A 8.28% B 8.65% C 8.90% D 9.31% E 10.78%

Reference no: EM131047366

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