What is b-b weighted-average cost of debt

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Reference no: EM132692042

B&B Group reported three debt obligations:

$ 180,000, 3.5% notes payable
$ 1,450,000, 5% bonds issued at par
$ 3,680,000, 6% mortgage notes

Problem 1: If the market rate of interest averaged 4.5% during the year, what is B&B's weighted-average cost of debt?

A. 4.50%
B. 4.83%
C. 4.67%
D. 5.64%
E. None of the Above

Reference no: EM132692042

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