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XYZ Corp Inc has two issues of debt outstanding. One is a 9 % coupon bond with a face value of $ 2 0 million,
XYZ Corp Inc has two issues of debt outstanding.
One is a coupon bond with a face value of $ million, a maturity of years, and yield to maturity of Coupons are paid annually. The other bond issue has a maturity of years, with coupons also paid annually, and a coupon rate of The face value of the issue is $ million, and the issue sells for of par value. The firms tax rate is
a What is the pretax cost of debt?
b What is the aftertax cost of debt?
please show me the calculations in excel and the formulas
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