Question
for the following 1000 part value bond, assuming annual interest payment and a 25% tax rate, calculate the after - tax cost to maturity using
for the following 1000 part value bond, assuming annual interest payment and a 25% tax rate, calculate the after - tax cost to maturity using the approximation formula.
life = 15 years
underwriting fee = $15
discount = -40$
coupon interest rate 8%
the after-tax cost of financing using the approximation formula is _________%
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
