Question
XYZ has an outstanding bond. It's a 6% semiannual coupon.Bond maturing in 4 years with a par value of $100 and is trading at $90.
XYZ has an outstanding bond. It's a 6% semiannual coupon.Bond maturing in 4 years with a par value of $100 and is trading at $90. Income tax rate is 25%.
Calculate the after-tax cost of debt for XYZ.
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
