Question
cigna has a zero coupon bond issue. Bond has a par value of $2000 and will mature in 3 years. It will be sold for
cigna has a zero coupon bond issue. Bond has a par value of $2000 and will mature in 3 years. It will be sold for $750. Marginal tax rate is 30%.
Whar is the annual after tax cost of debt to the company of issue?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
