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  • Dec 24, 2012, 10:04 AM
    Tara Baer
    Cost of Capital
    A bond that has $1000 par value and contract interest rate of 11.2%. Teh bonds have current market value of $1125 & will mature in 10 years. The firms marginal tax rate is 34%.

    What is the cost of capital from this bond debt: %

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