Question
Tomtom Co. issued a 10-year bond, with a coupon of 3%, making semiannual payments and a par value of $1,000. The bond currently sells for
Tomtom Co. issued a 10-year bond, with a coupon of 3%, making semiannual payments and a par value of $1,000. The bond currently sells for 95% of par. The company's tax rate is 21%.
Calculate the before-tax cost of debt, round to four decimal places
Calculate the after-tax cost of debt, round to four decimal places
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Banking With Integrity The Winners Of The Financial Crisis
Authors: Dr Heiko Spitzeck , Dr Michael Pirson, Dierksme , Dr. Heiko Spitzeck , Prof. Claus Dierksmeier, Dr. Michael Pirson
1st Edition
