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Find the cost of debt (rd), and the after-tax cost of debt for each of the following bonds: Bond Par Value Coupon Rate Maturity Current
Find the cost of debt (rd), and the after-tax cost of debt for each of the following bonds:
Bond | Par Value | Coupon Rate | Maturity | Current Value | Tax Rate |
A | 1,000 | 10% | 30 Years | 1,455 | 40% |
B | 1,000 | 12% | 13 Years | 954 | 35% |
C | 1,000 | 8% | 5 Years | 875 | 45% |
Bond A, Cost of Debt (rd) :
(to 2 decimal points)
Bond A, After Tax Cost of Debt:
(to 2 decimal points)
Bond B, Cost of Debt (rd):
(to 2 decimal points)
Bond B, After Tax Cost of Debt:
(to 2 decimal points)
Bond C, Cost of Debt (rd):
(to 2 decimal points)
Bond C, After Tax Cost of Debt:
(to 2 decimal points)
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