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You are analyzing the after - tax cost of debt for a firm. You know that the firm's 1 2 - year maturity, 1 4

You are analyzing the after

-

tax cost of debt for a firm. You know that the firm's

12 -

year maturity,

14 %

semiannual coupon bonds are selling at a price of $

1, 092 .

Assuming these bonds are the only debt outstanding for the firm. What is the current YTM of the bonds? What is the current YTM of the bonds and after

-

tax cost of debt for this firm if the bonds are selling at par?

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