What is the total cost of borrowing on this bond

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Question - A corporation issued bonds on January 1, 2018 with the following terms:

Face Value: $500,000

Coupon Rate of Interest 8%,

Term: 10 years

Interest: Semi-annual payments on June 30 and December 31

Market Rate of Interest 10%

Required - What is the total cost of borrowing on this bond?

Reference no: EM132603756

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