What is the company pre-tax cost of debt
Question:
Wilson's Cabinet has bonds outstanding that mature in eight years, have a 6 percent coupon and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,020. What is the company's pre-tax cost of debt?
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These bonds have a face value of $1,000 and a current market price of $1,020. What is the company's pre-tax cost of debt?
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Fill in the following table, which shows how much of each payment is interest versus principal repayment
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