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b. Compute the after-tax cost of debt using the information provided. The firm's tax rate is 25%. Currently, there is one outstanding 10% coupon semi-annual
| b. Compute the after-tax cost of debt using the information provided. The firm's tax rate is 25%. | ||||||||
| Currently, there is one outstanding 10% coupon semi-annual bond that sells for $900 and it has 25 years to matuurity. | ||||||||
| It will pay par value of $1,000 at maturity. PLEASE show work and use excel if possible. | ||||||||
| Bond maturity (years) | 25 | |||||||
| Payments per year | 2 | |||||||
| Annual coupon rate | 10% | |||||||
| Par value = | $1,000.00 | |||||||
| Bond price = | $900.00 | |||||||
| Tax rate = | 25% | |||||||
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The Retirees Complete Annuity Handbook
Authors: Scot Whiskeyman
1st Edition
8647470052, 979-8647470058
