Question
A company has an annual payment bond with 10 years to maturity and a price of $877.11. Face value is $1,000. The coupon rate is
A company has an annual payment bond with 10 years to maturity and a price of $877.11. Face value is $1,000. The coupon rate is 8%. What is the yield to maturity? Enter your answer as a percentage rounded to 2 decimal places (e.g., enter 5.25 percent as 5.25)
Same bond as previous question. A company has an annual payment bond with 10 years to maturity and a price of $877.11. Face value is $1,000. The coupon rate is 8%. The tax rate is 40%. What is the after-tax cost of debt for this bond (adjust YTM for taxes)? Enter your answer as a percentage rounded to 2 decimal places (e.g., enter 5.25 percent as 5.25)
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