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A company has 3,780 bonds outstanding trading at a face value of $1,000 each and a coupon rate of 5.50 percent. The interest is paid
- A company has 3,780 bonds outstanding trading at a face value of $1,000 each and a coupon rate of 5.50 percent. The interest is paid semi-annually. What is the amount of the annual interest tax shield if the tax rate is 21 percent?
| a. | $793,800 | |
| b. | $198,380 | |
| c. | $10,348 | |
| d. | $418,225 | |
| e. |
$43,659
|
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Global Business Today
Authors: Charles Hill
7th Edition
0078137217, 9780078137211
