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    Cost of debt

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    J & B, Inc. has $5 million of debt outstanding with a coupon rate of 12%. Currently, the yield to maturity on these bonds is 14%. If the firm's tax rate is 40%, what is the cost of debt to J & B?

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    https://brainmass.com/business/business-math/cost-of-debt-problem-208856

    Solution Summary

    This provides an example of finding cost of debt.

    $2.19

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