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What is the pretax cost of debt

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Reference no: EM132951588

Question - Suspect Corp. issued a bond with a maturity of 25 years and a semiannual coupon rate of 12 percent 3 years ago. The bond currently sells for 94 percent of its face value. The company's tax rate is 35 percent. What is the pretax cost of debt?

Reference no: EM132951588

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