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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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