Question
#13 Tomtom Co. issued a 20-year bond, with a coupon of 5%, making semiannual payments and a par value of $1,000. The bond currently sells
#13
Tomtom Co. issued a 20-year bond, with a coupon of 5%, making semiannual payments and a par value of $1,000. The bond currently sells for 115% of par. The company's tax rate is 21%. Calculate the after-tax cost of debt. (Enter percentages as decimals and round to 4 decimals)
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Financial Management For Nonprofit Organizations Policies And Practices
Authors: Jo Ann Hankin, John Zietlow, Alan Seidner, Tim O'Brien
3rd Edition
1119382564, 9781119382560
