Question
The current market price of Omni Corp.s bonds is $775. The bonds mature in 4 years, and the coupon rate on the bonds is 8%.
The current market price of Omni Corp.s bonds is $775. The bonds mature in 4 years, and the coupon rate on the bonds is 8%. Interest is paid semiannually, the par value of the bonds is $1,000, and the company is in the 35% tax bracket. Based on the previous information, what is the after-tax cost of Omni Corp.s debt?
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
