15)Microsoft is going to issue a $1,000 par value bond that pays a 7% annual coupon. The company expects investors to pay $942 for the 20-year bond. The expected flotation cost per bond is $42, and the firm is in the 30% tax bracket. Compute the following: a. The yield to maturity on the firm's bonds b. The firm's after-tax cost of existing debt c. The firm's after-tax cost of new debt

Need full Explanation - Studying purposes.