What is the pretax cost of debt

Reference no: EM13263546

jiminy's Cricket Farm issued a 30-year, 7.6 percent semiannual bond 6 years ago. The bond currently sells for 92.5 percent of its face value. The company's tax rate is 38 percent. What is the pretax cost of debt?

a-8.33%
b-4.16%
c-7.60%

Reference no: EM13263546

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