What is the companys pretax cost of debt

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Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 18 years to maturity that is quoted at 106 percent of face value. The issue makes semiannual payments and has an embedded cost of 5 percent annually.

What is the company's pretax cost of debt?

 

Reference no: EM13265293

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