The approximate before-tax cost of debt for a 15-year, 10 percent, $1,000 par value bond selling at $950 is
A. 10 percent.
B. 10.6 percent.
C. 12 percent.
D. 15.4 percent.
Answer:B
The approximate before-tax cost of debt for a 15-year, 10 percent, $1,000 par value bond selling at $950 is
A. 10 percent. B. 10.6 percent. C. 12 percent. D. 15.4 percent.