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A firm has three debt issues outstanding with the following characteristics: Issue A: $450 million market value of bonds with current effective annual ytm of
A firm has three debt issues outstanding with the following characteristics:
Issue A: $450 million market value of bonds with current effective annual ytm of 6.6%
Issue B: $325 million market value of bonds with current effective annual ytm of 5.2%
Issue C: $225 million market value of bonds with current effective annual ytm of 8.7%
What is the weighted average yield to maturity for this firm?
What is the after-tax cost of debt for this firm if their tax rate is 30%?
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