Pluega Inc. issued a $100

Pluega Inc. issued a $100

Pluega Inc. issued a $100 million 8.27% coupon debenture bond due in the next 20 years. The bonds each sold for $996. If the bonds pay interest semi-annually, what is Pluega’s after cash cost of debt? Assume 40% tax rate.a) 8.30% b) 4.99% c) 3.32% d) 4.96%

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