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You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 9.50 percent semiannual coupon bonds are selling
You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 9.50 percent semiannual coupon bonds are selling at a price of $1,247.33. These bonds are the only debt outstanding for the firm. (a1) Your answer is correct. What is the current YTM of the bonds? (Round final answer to 2 decimal places, e.g. 15.25%.) YTM 6.50 % eTextbook and Media Attempts: 2 of 3 used Using multiple attempts will impact your score. 50% score reduction after attempt 2 (a2) Your answer is correct. What is the after-tax cost of debt for this firm if it has a marginal tax rate of 34 percent? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) After-tax cost of debt 4.29 % (a3) What is the current YTM of the bonds and after-tax cost of debt for this firm if the bonds are selling at par? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answers to 2 decimal places, e.g. 15.25%.) YTM |% After-tax cost of debt % e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Using multiple attempts will impact your score. 50% score reduction after attempt 2
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