Pride of Lions has bonds outstanding that carry an annual coupon of 5.75 percent.The bonds mature in 9 years and are currently priced at 98 percent of face value.What is the firm's pretax cost of debt?
A) 6.04 percent
B) 9.850 percent
C) 8.60 percent
D) 11.28 percent
E) 12.02 percent
Correct Answer:
Verified
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