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Intro Jimstan & Jimstan Corp. can sell a new 10-year bond with an annual coupon of 5.5% and a face value of $1,000 for
Intro Jimstan & Jimstan Corp. can sell a new 10-year bond with an annual coupon of 5.5% and a face value of $1,000 for $1,224.82. The company will incur flotation costs of $40 per bond and has a tax rate of 26%. Part 1 What are the net proceeds from selling the bond? 0+ decimals Submit Part 2 What is the company's pre-tax cost of debt? 4+ decimals Submit Part 3 What is the company's after-tax cost of debt? 4+ decimals Submit Attempt 1/3 for 5 pts. Attempt 1/3 for 5 pts. Attempt 1/3 for 5 pts.
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