The approximate before-tax cost of debt for a 10-year, 8 percent, $1,000 par value bond selling at $1,150 is
A. 6 percent.
B. 8.3 percent.
C. 8.8 percent.
D. 9 percent.
Answer:A
The approximate before-tax cost of debt for a 10-year, 8 percent, $1,000 par value bond selling at $1,150 is
A. 6 percent. B. 8.3 percent. C. 8.8 percent. D. 9 percent.