The company will use new bonds for any capital project,accor

The company will use new bonds for any capital project,according to the capital structure. These bonds will have a market and parvalue of $1000, with a coupon rate of 6% and a floatation cost of 7%. The bondswill mature in 20 years and no other debt will be used for any new investments.What is the cost of new debt? What are the advantages and disadvantages ofissuing new debt in the capital structure?

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