Question
VEC Inc. currently has 940000 zero coupon bonds outstanding, each with a face value of $1,000. The bonds have a maturity of 4 years and
VEC Inc. currently has 940000 zero coupon bonds outstanding, each with a face value of $1,000. The bonds have a maturity of 4 years and they are traded in the market at 78% of par. If the tax rate is 20%, what is its after-tax cost of debt capital?
- 6.41%
- 7.46%
- 5.13%
- 5.97%
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
