Three years ago,the Morgan Co.issued 15-year,6.5 percent semiannual coupon bonds at par.Today,the bonds are quoted at 100.6.What is this firm's pretax cost of debt?
A) 6.27 percent
B) 6.08 percent
C) 6.43 percent
D) 6.83 percent
E) 6.29 percent
Correct Answer:
Verified
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