Bender and Co. is issuing a $1,000 par value bond that pays 9% interest annually. Investors are expected to pay $918 for the 10-year bond. Bender will have to pay $33 per bond in flotation costs. What is the cost of debt if the firm is in the 34% tax bracket?
A.11.95%
B.9.23%
C.9.01%
D.7.23%
Bender and Co. is issuing a $1,000 par value bond that pays 9% interest ann
