Question
The Holmes Company's currently outstanding bonds have a 7% coupon and an 11% yield to maturity. Holmes believes it could issue new bonds at par
The Holmes Company's currently outstanding bonds have a 7% coupon and an 11% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Holmes' after-tax cost of debt? Round your answer to two decimal places.
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Handbook Of Asset And Liability Management Volume 2
Authors: S. A. Zenios, W. T. Ziemba
1st Edition
0444528024, 978-0444528025
