Question
Bravo, Inc. has a debt issue outstanding with 10 years to maturity and is quoted at 108% of face value. The issue makes semiannual payments
Bravo, Inc. has a debt issue outstanding with 10 years to maturity and is quoted at 108% of face value. The issue makes semiannual payments and has an annual coupon rate of 9. What is Bravo, Inc.'s pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Pretax cost of debt % What is the Bravo, Inc.'s aftertax cost of debt if the tax rate is 35 percent, ? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Aftertax cost of debt %
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