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The Apple Tree Lodge sold an issue of 30-year bonds. The bonds sold at $985 each. After issuance costs, Tokyo Food Supplies received $979 each.
The Apple Tree Lodge sold an issue of 30-year bonds. The bonds sold at $985 each. After issuance costs, Tokyo Food Supplies received $979 each. The maturity value is $1,000 each and the coupon rate is 11% and paid annually. What is the after-tax cost of debt for these bonds if Tokyo Food Supplies marginal tax rate is 40%?
P/Y | |
Beg/End | |
N | |
I/Y | |
PV | |
PMT | |
FV |
11.01%
11.24%
4.50%
6.74%
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