What is the firms cost of debt

Reference no: EM13258621

The Imaginary Products Co. currently has $300 million of market value debt outstanding. The 9 percent coupon bonds (semiannual pay) have a maturity of 15 years and are currently priced at $1,440.03 per bond. If Imaginary is subject to a 40 percent marginal tax rate, then what is the firm's cost of Debt?

Reference no: EM13258621

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