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1. Your firm has just issued a 10-year $1,000.00 par value, 6% coupon quarterly bond for a net price of $950.00. What is the annual
1. Your firm has just issued a 10-year $1,000.00 par value, 6% coupon quarterly bond for a net price of $950.00. What is the annual yield to maturity?
2. Your firm has just issued a 10-year $1,000.00 par value, 6% coupon semiannual bond for a net price of $964.00. The firm's tax rate is 28%.
a) Annual YTM ~ cost of debt is _____%.
b) The after-tax cost of debt is
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