Question
5 years ago, Barton Industries issued 25-year non-callable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6
5 years ago, Barton Industries issued 25-year non-callable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt?
Round your answer to 2 decimal places.
Do not round intermediate calculations.
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1 Face value FV 1600 2 Coupon rate 800 3 Number of compounding periods per ...
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
