26. What is the after-tax cost of debt with annual coupon rate of 4.5 percent, a maturity...
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26. What is the after-tax cost of debt with annual coupon rate of 4.5 percent, a maturity of 11 years, and a current market value of $850? Assume that the tax rate is 40 percent and the par value of the bond is $1000.
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To calculate the aftertax cost of debt we need to find the yield to maturity YTM of the bond an... View the full answer
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