Question
XYZ Company has a $1,000 par-value bond outstanding with 20 years remaining to maturity, a coupon rate of 9%, and semiannual payments. If the current
XYZ Company has a $1,000 par-value bond outstanding with 20 years remaining to maturity, a coupon rate of 9%, and semiannual payments. If the current market price is $1,018.67, what is the after-tax cost of debt if the tax rate is 40%?
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Canadian Public Sector Financial Management
Authors: Andrew Graham
3rd Edition
1553395417, 9781553395416
