Question
A firm issues a 20-year semi-annual payment bond, which is priced at $1213.55. The coupon rate of the bond is 9.00%. The tax rate is
A firm issues a 20-year semi-annual payment bond, which is priced at $1213.55.
The coupon rate of the bond is 9.00%. The tax rate is 37 percent.
What is the after-tax cost of debt? _______% (to two decimal places)
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
