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MRM ltd has a ksh. 4,000,000 irredeemable bond with an interest rate of 12%. The corporation tax applicable to the company is 30%. Required: Calculate

MRM ltd has a ksh. 4,000,000 irredeemable bond with an interest rate of 12%. The corporation tax applicable to the company is 30%. Required: Calculate the after-tax cost of debt to MRM (2 marks) Define the following terms (8 marks) i. Par or Face Value ii. Coupon Rate iii. Maturity Date iv. Required Return

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