Question
A $1,000 par bond is currently selling for $1,100. It has a 9% coupon rate, fifteen years remaining to maturity, and pays interest semi-annually. If
A $1,000 par bond is currently selling for $1,100. It has a 9% coupon rate, fifteen years remaining to maturity, and pays interest semi-annually. If the firm's tax rate is 35%, what is the after-tax cost of debt?
| 9.00% | ||
| 7.84% | ||
| 6.07% | ||
| 5.85% | ||
| 5.10% |
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International Project Finance
Authors: Felix I. Lessambo
1st Edition
3030963896, 978-3030963897
