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ABC Corporation has a $1,000 bond outstanding with 10 years to maturity. The bond carries an annual interest payment of $84 paid semiannually and is

ABC Corporation has a $1,000 bond outstanding with 10 years to maturity. The bond carries an annual interest payment of $84 paid semiannually and is currently selling for $1,095. ABC Corporations tax rate is 30%

Required:

Determine the yield to maturity on the bond. What is the after-tax cost?

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