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Part 10. Calculate the after-tax cost of debt for a company with bond issue that pays 10% coupon semiannually. the bonds have a face

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Part 10. Calculate the after-tax cost of debt for a company with bond issue that pays 10% coupon semiannually. the bonds have a face value of $1,000 and mature in 17 years. The bonds are currently priced at $1,060 and the tax rate is 25%.

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To calculate the aftertax cost of debt we need to consider the coupon payments the face value the purchase price and the tax rate The formula for calc... blur-text-image

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