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a firm recently issued two types of bonds. THe first issue consisted of 2 0 - year stratight debt with an 8 % coupon paid
a firm recently issued two types of bonds. THe first issue consisted of year stratight debt with an coupon paid annually. The second issue consisted of year bonds with a coupon paid annually and attached warrants, where the value of warrants is $ Both issues sold at their $ par values. Assume a tax rate of THe aftertax yield of the first issue is: What is the aftertax yield of the second issue?
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