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11. Anthony's Anchovies, Inc. sold a 20-year bond issue two years ago. The bond has a 5.35% annual coupon and a $1,000 face value. If
11. Anthony's Anchovies, Inc. sold a 20-year bond issue two years ago. The bond has a 5.35% annual coupon and a $1,000 face value. If the current market price of the bond is $751.64 and the tax rate is 34%, what is the aftertax cost of debt? A) 4.2% B) 4.4% C) 8.0% D) 6.6% E) 5.3%
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Cornerstones of Managerial Accounting
Authors: Mowen, Hansen, Heitger
3rd Edition
324660138, 978-0324660135
