Non-callable semiannual bonds outstanding

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Reference no: EM13919367

Akeya Equipment has 120,000 non-callable semiannual bonds outstanding with a 8 percent coupon interest and par value of $1,000. The bonds have 15 years to maturity and sells for 95 percent of the par. The company’s average tax rate is 35%. What is the pre-tax cost of debt (R_D)?

Reference no: EM13919367

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