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QUESTION
KatyDid Clothes has a $152 million (face value) 20-year bond issue selling for 107 percent of par that carries a coupon rate of 11 percent, paid...
KatyDid Clothes has a $152 million (face value) 20-year bond issue selling for 107 percent of par that carries a coupon rate of 11 percent, paid semiannually. What would be Katydid's before-tax component cost of debt?
