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What is the firm cost of debt

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Question - Ellie's Boutique has a bond issue outstanding that matures in fourteen years. The bonds pay interest semi-annually. Currently, the bonds are priced at $780 and carry an 8 percent coupon. The face value of the bond is $1000. What is the firm's cost of debt? (Show your work for partial credit).

Reference no: EM132351093

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