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Check my work 3 Olympic Sports has two issues of debt outstanding. One is a 9% coupon bond with a face value of $29
Check my work 3 Olympic Sports has two issues of debt outstanding. One is a 9% coupon bond with a face value of $29 million, a maturity of 10 years, and a yield to maturity of 10%. The coupons are paid annually. The other bond issue has a maturity of 15 years, with coupons also paid annually, and a coupon rate of 10%. The face value of the issue is $34 million, and the issue sells for 96% of par value. The firm's tax rate is 20%. 1.66 points a. What is the before-tax cost of debt for Olympic? Skipped b. What is Olympic's after-tax cost of debt? eBook Note: For all the requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Print a. Before-tax cost of debt b. After-tax cost of debt % % do do 5
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