What is the companys pre-tax cost of debt

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Reference no: EM13826126

The Bet-r-Bilt Company has a 5-year bond outstanding with a 4.35 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 94 percent of its face value. What is the company's pre-tax cost of debt?

11.0 percent

4.4 percent

5.7 percent

8.8 percent

2.8 percent

Reference no: EM13826126

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