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The Approximate Before-Tax Cost of Debt for a 15-Year, 10

Question 46

Multiple Choice

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.

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