Question
The outstanding bonds of Microsoft have a coupon rate of 8%, payable semi-annually, and a current price of $925. The bonds mature in 20 years.
The outstanding bonds of Microsoft have a coupon rate of 8%, payable semi-annually, and a current price of $925. The bonds mature in 20 years. If Microsoft pays taxes at the rate of 40%, what is the effective cost of debt?
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Financial Statement Analysis & Dividend Investing
Authors: Andrew P.C.
1st Edition
1075873940, 978-1075873942
