Business, 15.12.2020 16:40 muhammadcorley123456
Hydro Systems has bonds outstanding with a face value of $1,000, 13 years to maturity, and a coupon rate of 6.5 percent, paid annually. What is the company's pretax cost of debt if the bonds currently sell for $1,056?
a. 5.87 percent
b. 6.42 percent
c. 4.71 percent
d. 5.36 percent
e. 5.55 percent
Answers: 2
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Hydro Systems has bonds outstanding with a face value of $1,000, 13 years to maturity, and a coupon...
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