international Research Journal of Applied Finance ISSN 2229 -6891 Case Study Series Vol. VII Issue 8 August, 2016 Fiftypercent of the SS00 million purchase would be using callable bonds with a coupon interest rate of 5% at a par value of $1,000 per bond and a term of 30 years. The 250,000 issued bonds would pay interest semi-annually and, with Roman's corporate tax rate at 34%, the after-tax interest rate on the issue would be 3.3%. The would have a market price of 103 as a percentage of par Twenty-fide percent of the purchase price would he fin anced