What is avicorp pre-tax cost of debt

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Avicorp has just issued some five-year bonds, with a 6% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the face value is $1000. It is currently priced at 95% of par value. What is Avicorp’s pre-tax cost of debt (expressed in APR)?

Reference no: EM132033035

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