What is the firm''s pretax cost of debt

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Reference no: EM131123993

Birds of a Feather has 10-year bonds outstanding that carry an annual coupon of 8 percent. The bonds mature in 7 years and are currently priced at 110 percent of face value. What is the firm's pretax cost of debt?

A) 6.60 percent

B) 7.70 percent

C) 7.34 percent

D) 8.23 percent

E) 6.20 percent

Reference no: EM131123993

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