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What is the firm pretax cost of debt

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Titans, Inc. has 6 percent bonds outstanding that mature in 14 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $993 each. What is the firm's pretax cost of debt?

5.97 percent
6.08 percent
6.14 percent
6.31 percent
6.40 percent

 

Reference no: EM13263954

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