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Lyme Home has 3,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 8%. The interest is paid semi -

Lyme Home has 3,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 8%. The interest is paid semi - annually.

a. What is the amount of the annual interest tax shield if the tax rate is 30%?

b. What is the present value of the tax shield?

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