What is the cost of debt if yield to maturity on the bonds


$5 million of debt outstanding with a coupon rate of 12%. currently, the yield to maturity on these bonds is 14%, what is the cost of debt?

A. 14.0
B. 12.0%
C. 8.4%
D. 5.6%

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Finance Basics: What is the cost of debt if yield to maturity on the bonds
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