Question
Eddies Exports has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate
Eddies Exports has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 35%, what is the after-tax cost of the companys debt?
| Bond | Coupon Rate | Price Quote | Maturity | Face Value |
| 1 | 6.00% | 103.20 | 5 years | $450,000 |
| 2 | 6.80% | 97.25 | 15 years | 500,000 |
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Finance And The Behavioral Prospect
Authors: James Ming Chen
1st Edition
331981351X, 978-3319813516
