The long-term debt of Topstone Industries is currently selling for 104.50% of its face value. The issue matures in 10 years and pays an annual coupon of 8%. What is the cost of debt?
A) 6.75%
B) 7.35%
C) 7.84%
D) 8.60%
E) 9.45%
Correct Answer:
Verified
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