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Buchanan Corp. is refunding $11 million worth of 11% debt. The new bonds will be issued for 9%. The corporation's tax rate is 37%. The
| Buchanan Corp. is refunding $11 million worth of 11% debt. The new bonds will be issued for 9%. The corporation's tax rate is 37%. The call premium is 8%. What is the net cost of the call premium? |
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Bond Markets Analysis And Strategies
Authors: Frank J Fabozzi
8th Edition
013274354X, 9780132743549
