Birds of a Feather has bonds outstanding that carry an annual coupon of 6 percent.The bonds mature in 11 years and are currently priced at 94 percent of face value.What is the firm's pretax cost of debt?
A) 6.79 percent
B) 10.60 percent
C) 9.34 percent
D) 12.03 percent
E) 12.77 percent
Correct Answer:
Verified
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