What is the company pretax cost of debt

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Problem - Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 13 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 5 percent annually. What is the company's pretax cost of debt? If the tax rate is 22 percent, what is the after tax cost of debt?

Reference no: EM133010645

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