Pre-tax component cost of debt

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Oriole Industries has $10 million in outstanding bonds that are selling for 99 percent of par value. The bonds pay an annual coupon of 9 percent and mature in 10 years. What is Oriole Industries' pre-tax component cost of debt?

Reference no: EM13947724

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Pre-tax component cost of debt : Oriole Industries has $10 million in outstanding bonds that are selling for 99 percent of par value. The bonds pay an annual coupon of 9 percent and mature in 10 years. What is Oriole Industries' pre-tax component cost of debt?

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