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What is the cost of the company debt

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Battan Inc. is considering issuing a bond with a par value of $ 1,000, which will pay an interest rate of 8% per year. The company expects investors to pay $ 910 for the 20-year bond. The floating cost of the bond is $ 42. What is the cost of the company's debt? Assume 34% tax rate

Reference no: EM132524439

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