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A firm plans to issue a $1,000 par value, 10-year bond with a 10% annual coupon rate. The bond is currently selling for $900. What is the cost of debt to the firm?
Hint: Solve for the Yield to Maturity (interest rate) of the bond.
11.75%
12.85%
17.63%
15.70%
16.77%
nternal customers in organizations, Distribution resource planning (DRP), Electronic data interchange (EDI), Stocktaking, inventory policy, Shelf life of products, Limited storage space
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