Question
Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $2,000 face value and a 6% coupon, semiannual payment ($60 payment
Quantitative Problem:5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $2,000 face value and a 6% coupon, semiannual payment ($60 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? Round your answer to 2 decimal places. Do not round intermediate calculations.
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
