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Fortune Brands Cost of Debt: YTM Fortune Brand has bonds outstanding with a market value of $ 4.75 billion. The par value is $5 billion.

Fortune Brands Cost of Debt: YTM

Fortune Brand has bonds outstanding with a market value of $ 4.75 billion. The par value is $5 billion. The bond issue has 10 years to maturity and a face value of $1,000. The bonds offer a 6% coupon rate with semi-annual payments. Fortune brands tax rate is 40%.

What is Fortune brands after-tax cost of debt (based on YTM of the bonds)?

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