What is the firm pre-tax cost of debt

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Question - Maple Industries has 7 percent bonds outstanding that mature in thirteen years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $1,021.16. What is the firm's pre-tax cost of debt?

a. 6.75 percent

b. 6.84 percent

c. 6.91 percent

d. 7.03 percent

e. 7.14 percent

Reference no: EM132596807

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