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The coca-Cola company is planning to issue debt that will mature in 2093. In many respects, the issue is similar to the currently outstanding debt
The coca-Cola company is planning to issue debt that will mature in 2093. In many respects, the issue is similar to the currently outstanding debt of the corporation. Use Table 11-3. 8. What is the yield to maturity on similarly outstanding debt for the firm in terms of maturity. Note: Input your answer as a percent rounded to 2 decimal places. Answer is complete and correct. 370 4 : b. Assume that because the new debt wil be issued at par, the sequired yieid to maturity will be 0.25 percent higher than the value determined in part a What is the new yleld to maturity? Note: Do not round intermediate calculations. Input your onswer os a percent rounded to 2 decimai places. c. If the firm is in a 25 percent fax bracket, what is the aftertax cost of debt for the yieid determined in part b? Note: Do not round intermediote colculotions. Input your answer os o percent rounded to 2 decimal places. Answer is complete but not entirely correct. The coca-Cola company is planning to issue debt that will mature in 2093. In many respects, the issue is similar to the currently outstanding debt of the corporation. Use Table 11-3. 8. What is the yield to maturity on similarly outstanding debt for the firm in terms of maturity. Note: Input your answer as a percent rounded to 2 decimal places. Answer is complete and correct. 370 4 : b. Assume that because the new debt wil be issued at par, the sequired yieid to maturity will be 0.25 percent higher than the value determined in part a What is the new yleld to maturity? Note: Do not round intermediate calculations. Input your onswer os a percent rounded to 2 decimai places. c. If the firm is in a 25 percent fax bracket, what is the aftertax cost of debt for the yieid determined in part b? Note: Do not round intermediote colculotions. Input your answer os o percent rounded to 2 decimal places. Answer is complete but not entirely correct
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