1. A company sells a new issue of 10 year, 12 per cent bonds of 100, each...

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1. A company sells a new issue of 10 year, 12 per cent bonds of 100, each at par. It will pay interest annually and repay bonds at par on maturity. What is the cost of bonds? If the tax rate is 30 percent, what is the after-tax cost of the bond?

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Financial Management

ISBN: 9789325982291

11th Edition

Authors: I.M. Pandey

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Question Posted: Oct 22, 2024 11:00 AM

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1. A company sells a new issue of 10 year, 12 per cent bonds of 100, each...

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Financial Management

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