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Too Young, Incorporated, has a bond outstanding with a coupon rate of 7.3 percent and semiannual payments. The bond currently sells for $1,870 and matures in 20 years. The par value is $2,000. What is the company's pretax cost of debt?

A. 8.07%
B. 8.57%
C. 8.30%
D. 7.95%
E. 3.92%

Sagot :

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