A corporate bond has a face value of $1,000 and a coupon rate of 9 The bond matures in 14 years and has a current market price of $946 If the corporation sells more bonds it will incur flotation costs of $26 per bond If the corporate tax rate is 35 , what is the after tax cost of debt capital

Question

A corporate bond has a face value of $1,000 and a coupon rate of 9   The bond matures in 14 years and has a current market price of $946  If the corporation sells more bonds it will incur flotation costs of $26 per bond  If the corporate tax rate is 35 , what is the after tax cost of debt capital

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Question

A corporate bond has a face value of $1,000 and a coupon rate of 9%. The bond matures in 14 years and has a current

A corporate bond has a face value of $1,000 and a coupon rate of 9%. The bond matures in 14 years and has a current market price of $946. If the corporation sells more bonds it will incur flotation costs of $26 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital?

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