Find what is b-b weighted-average cost of debt

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Reference no: EM132693294

B&B Group reported three debt obligations:

  • $ 180,000, 3.5% notes payable
  • $ 1,450,000, 5% bonds issued at par
  • $ 3,680,000, 6% mortgage notes

Problem 1: If the market rate of interest averaged 4.5% during the year, what is B&B's weighted-average cost of debt?

A. 4.50%

B. 4.83%

C. 4.67%

D. 5.64%

E. None of the Above

Reference no: EM132693294

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