Question
The Trinity Company's currently outstanding bonds have a 9% coupon and a 6% yield to maturity. Trinity believes it could issue new bonds at par
The Trinity Company's currently outstanding bonds have a 9% coupon and a 6% yield to maturity. Trinity believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 20%, what is Trinity's after tax cost of debt?
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The Meaningful Money Handbook
Authors: Pete Matthew
1st Edition
0857196510, 978-0857196514
