Question
A firm has issued a bond. The bond has a 6% coupon rate, paid semiannually, a current maturity of 20 years, and sell for $1,000.
A firm has issued a bond. The bond has a 6% coupon rate, paid semiannually, a current maturity of 20 years, and sell for $1,000. The firms marginal tax rate is 21%. Whats the firms after-tax component cost of debt? 7.9% 5.5% 6.0% 21%
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Options Futures And Other Derivatives
Authors: John C. Hull
11th Edition
013693997X, 9780136939979
