Titans,Inc.has 6 percent bonds outstanding that mature in 14 years.The bonds pay interest semiannually and have a face value of $1,000.Currently,the bonds are selling for $993 each.What is the firm's pretax cost of debt?
A) 5.97 percent
B) 6.08 percent
C) 6.14 percent
D) 6.31 percent
E) 6.40 percent
Correct Answer:
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