Question
Suppose a firm has a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9%, and coupons are paid
Suppose a firm has a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9%, and coupons are paid semiannually. The bond is currently selling for $1,107.41. What is the after-tax cost of debt if the relevant tax rate is 40 percent?
| 2.0% | ||
| 3.2% | ||
| 4.8% | ||
| 8.0% | ||
| 12.5% |
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Understanding Terrorist Finance
Authors: T. Wittig
2011th Edition
0230291848, 978-0230291843
