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25. Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. The marginal corporate tax rate is

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25. Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. The marginal corporate tax rate is To = 0.35. Discount the tax shields at the cost of debt (bond yield). HINT: MM's formula for the present value of interest tax shields. Tc D. only holds for perpetual debt. a. A 2,200 of perpetual debt trading at par and yielding 10%. (Do not round intermediate calculations. Express your answer in whole dollars, no "$", no decimal places.) b. A one-year loan of 2,200 yielding 10%.(Do not round intermediate calculations. Express your answer in whole dollars, no "$", no decimal places.) 0. A seven-year loan of 2,200 with annual payments yielding 10%. Assume no principal is repaid until maturity, and consequently, interest payments are equal each ot the seven years. {Do not round intermediate calculations. Express your answer rounded to the nearest dollar, no "$", no decimal places.)

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