Question
The Holmes Company's currently outstanding bonds have a 9% coupon and a 10% yield to maturity. Holmes believes it could issue new bonds at par
The Holmes Company's currently outstanding bonds have a 9% coupon and a 10% 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 25%, what is Holmes' after-tax cost of debt? Round your answer to two decimal places.
______%
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
