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    Principles of Corporate Finance Study Set 4
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    Exam 9: The Cost of Capital
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    ABC Incorporated's 8% Coupon Bonds, with Six Years to Maturity
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ABC Incorporated's 8% Coupon Bonds, with Six Years to Maturity

Question 109

Question 109

True/False

ABC Incorporated's 8% coupon bonds, with six years to maturity, are trading at 112. Theapproximate cost of new debt for the firm is 5.7%.

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