Question
Belton Distribution Company is issuing a $1,000 par value bond that pays 7.6 percent annual interest and matures in 15 years that is paid semiannually.
Belton Distribution Company is issuing a $1,000 par value bond that pays 7.6 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay $963
for the bond. The company is in the 20 percent marginal tax bracket.
The firm's after-tax cost of debt on the bond is (?)%.
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
