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A bond issue sells for $950. The coupon rate is 7%, face value $1,000, the bonds mature in 20 years, and interest is paid semiannually.
A bond issue sells for $950. The coupon rate is 7%, face value $1,000, the bonds mature in 20
years, and interest is paid semiannually. The tax rate is 35%. What is the after-tax cost of debt?
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Financial Risk Manager Handbook
Authors: Philippe Jorion
6th Edition
0470904011, 978-0470904015
