Tulip LLC issued 10.000, 9 % debentures of OMR 85 each on XXXXXXXXXXto be matured on XXXXXXXXXXThe company wants to knowthe current cost of its existing debt and the market price of the debenture is...

Tulip LLC issued 10.000, 9 % debentures of OMR 85 each on 1-4-2018 to be matured on 1-4-2024. The company wants to know the current cost of its existing debt and the market price of the debenture is OMR 75. The debenture is redeemed at discount rate of 5%Find the cost of existing debentures assuming 40 % tax rate. a)8.02% b)7.12% c)5.54% d)11.05%