Question
A corporation has an outstanding bond with the following characteristics: Coupon rate 6.00% Interest payments Semiannually Face value $1,000 Years to maturity 8 Current price
A corporation has an outstanding bond with the following characteristics: Coupon rate 6.00% Interest payments Semiannually Face value $1,000 Years to maturity 8 Current price $902.81 If the marginal tax rate is 35%, what is this firm's after-tax cost of debt (2 decimal points in percentage)?
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
2nd Edition
0765625229, 9780765625229
