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Cost of debt using the approximation formula: For the following $1,000-par-value bond, assuming annual interest payment and a 30% tax rate, calculate the after tax
Cost of debt using the approximation formula: For the following $1,000-par-value bond, assuming annual interest payment and a 30% tax rate, calculate the after tax cost to maturity using the approximation formula.
Life-20 years
underwriting fee-$30
Discount (-) or Premium (+) -(-30)
Coupon Interest rate-8%
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