What is JACK cost of debt capital

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Question - JACK has 100,000 bonds outstanding that pay $25 every six months. The bonds are currently selling for $880 and mature in 5 years. The U.S. Treasury bill (rf) is yielding 2% and the expected market return is 12%. JACK 's tax rate is 21%. What is JACK's cost of debt capital?

Reference no: EM133036138

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