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Suppose your asked to compute the cost of debt for Dante, Tycho, and Associates (DTA). According to the Wall Street Journal, DTA has bonds outstanding
Suppose your asked to compute the cost of debt for Dante, Tycho, and Associates (DTA). According to the Wall Street Journal, DTA has bonds outstanding that mature in 13 years, have a 6 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,040. What is DTA's aftertax cost of debt if its tax rate is 40.0 percent?
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