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A firm has two types of debt in their capital structure. Theyhave 200 coupon bonds selling at $986.

A firm has two types of debt in their capital structure. Theyhave 200 coupon bonds selling at $986.

A firm has two types of debt in their capital structure. Theyhave 200 coupon bonds selling at $986.68 each. They also have$200,000 worth of bank debt, which has an interest rate of 4.5%. Ifthe firms weighted average cost of debt is 5.24%, what is the YTMon the bonds?A) 5.99%B) 11.67%C)8.64%D)14.95%