Crowell Inc. issued 20-year, 4 percent semiannual coupon bonds with par value of $1,000. The bond price is quoted at 110

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answerhappygod
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Crowell Inc. issued 20-year, 4 percent semiannual coupon bonds with par value of $1,000. The bond price is quoted at 110

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Crowell Inc. issued 20-year, 4 percent semiannual coupon bondswith par value of $1,000. The bond price is quoted at 110% of thepar. What is its pre-tax cost of debt?
a) 2.79%
b) 3.31%
c) 4.66%
d) 1.66%
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