The Oshkosh Travel Company is considering issuing additional debt. They wish to use the yield on their
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The Oshkosh Travel Company is considering issuing additional debt. They wish to use the yield on their existing debt as a guide to the cost of new debt. They currently have a 5% coupon bond, paying interest semiannually, that matures in ten years and has a current market price of 80, or $800 per $1,000 face value bond. If Oshkosh’s marginal tax rate is 30%, what is their expected cost of new debt?
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Related Book For 
Financial Management And Analysis (Frank J. Fabozzi Series)
ISBN: 9780471477617
2nd Edition
Authors: Frank J. Fabozzi, Pamela P. Peterson
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