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Question 1 Rappaport industries has 6,000 perpetual bonds outstanding with a face value of $1000 each. The bonds have a coupon rate of 6.5% and
Question 1
Rappaport industries has 6,000 perpetual bonds outstanding with a face value of $1000 each. The bonds have a coupon rate of 6.5% and a yield to maturity of 6.8%. The tax rate is 39%. What is the present value of the interest tax shield?
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