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Posted on Jul 17, 2024

The coupon rate on an issue of debt is 1 0 % . The yield to maturity on this issue is 1 0 % .

The coupon rate on an issue of debt is

10 % .

The yield to maturity on this issue is

10 % .

The corporate tax rate is

35 % .

What would be the approximate after

-

tax cost of debt for a new issue of bonds?

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