You are analyzing the after$-$tax cost of debt for a firm. You know that the firm's $12-$year maturity, $9\mathrm{.}00$ percent semiannual coupon bonds are selling at a price of $$868.$ Assuming that these bonds are the only debt outstanding for the firm.

Problem $13\mathrm{.}19$ a$1-$a$3($a$1)$

Your Answer

Correct Answer

What is the current YTM of the bonds? $($Round intermediate calculations to $4$ decimal places, e$.$g$.1\mathrm{.}2514$ and final answer to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

What is the after tax cost of debt for this firm if it has a marginal tax rate of $34$ percent $?$

What is the current YTM of the bonds and after tax cost of debt for this firm if the bonds are selling par, YTM $\%$ & after tax cost of debt $\%$ round final answers $2$ decimals places. Show all work for each.