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Jiminys Cricket Farm issued a 30-year, 4.5 percent semiannual bond three years ago. The bond currently sells for 104 percent of its face value. The
| Jiminys Cricket Farm issued a 30-year, 4.5 percent semiannual bond three years ago. The bond currently sells for 104 percent of its face value. The companys tax rate is 22 percent. |
| Settlement | 1/1/2020 |
| Maturity | 1/1/2047 |
| Coupon rate | 4.50% |
| Price (% of par) | 104 |
| Redemption (% of par) | 100 |
| Payments per year | 2 |
| Tax rate | 22% |
| Pretax cost of debt | |
| Aftertax cost of debt |
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Finance For Freelancers Financial Intelligence
Authors: Andrew Holmes
1st Edition
1408101165, 978-1408101162
