Question
A firm's outstanding bonds have the following terms and information: Coupon Rate: 5.25% Years to Maturity: 10 Interest Payments: Semi-annual Currently trading at: $897.25 Tax
A firm's outstanding bonds have the following terms and information: Coupon Rate: 5.25% Years to Maturity: 10 Interest Payments: Semi-annual Currently trading at: $897.25 Tax Rate: .35 a. What is the yield to maturity on the bonds? b. Ignoring flotation costs, what is the firm's cost of debt, before tax? c. What is the after-tax cost of debt?
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Personal Finance
Authors: Jane King, Mary Carey
2nd Edition
0198748779, 9780198748779
