Question
1- Belton Distribution Company is issuing a $ 1,000 par value bond that pays 7.0% annual interest and matures in 15 yrs that is paid
1- Belton Distribution Company is issuing a $ 1,000 par value bond that pays 7.0% annual interest and matures in 15 yrs that is paid semiannually. Investors are willing to pay $ 958 for the bond. The company is in the 18% marginal tax bracket. What is the firms after-tax cost of debt on the bond?
The firm after-cost of debt on the bond is ....% ( round to two decimal places)
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
