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The Marks Corporation has bonds in the market with the below characteristics. If the company has a marginal tax rate of 35% what is its
| The Marks Corporation has bonds in the market with the below characteristics. If the company has a marginal tax rate of 35% what is its cost of debt? | ||||||||||||
| Bond Characteristics: | ||||||||||||
| Face Value: | $1,000 | |||||||||||
| Coupon Rate: | 8% | |||||||||||
| Frequency of payments: | Semi-annual | |||||||||||
| Years to maturity: | 12 | |||||||||||
| Current price of bonds: | $925 | |||||||||||
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Foundations Of Financial Markets And Institutions
Authors: Franco Modigliani, Frank J. Jones, Michael G. Ferri, Frank J. Fabozzi
3rd Edition
0130180793, 978-0130180797
