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P94 Cost of debt using the approximation formula For each of the following $1,000-par-value bonds, assuming annual interest payment and a 21% tax rate, calculate

P94 Cost of debt using the approximation formula For each of the following $1,000-par-value bonds, assuming annual interest payment and a 21% tax rate, calculate the after-tax cost to maturity, using the approximation formula. Bond Life (years) Underwriting fee Discount () or premium (+) Coupon interest rate

A 20 $25. $20 9%

B 16 40 +10 10

C 15 30 15 12

D 25 15 par 9

E 22 20 60 11

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