Question
For the following $1,000-par-value bond, assuming annual interest payment and a 26% tax rate, calculate the after-tax cost to maturity using the approximation formula. Life
For the following $1,000-par-value bond, assuming annual interest payment and a 26% tax rate, calculate the after-tax cost to maturity using the approximation formula.
| Life | Underwriting fee | Discount () orpremium(+) | Coupon interest rate |
| 20 years | $20 | $20 | 7% |
The after-tax cost of financing using the approximation formula is enter your response here%. (Round to two decimal places.)
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The ImpactAssets Handbook For Investors
Authors: Jed Emerson
1st Edition
1783087293, 978-1783087297
