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You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 13.00 percent semiannual coupon bonds are selling
You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 13.00 percent semiannual coupon bonds are selling at a price of $1,207. Assuming that these bonds are the only debt outstanding for the firm. Problem 13.19 a1-a3(a1) Your answer is correct. What is the current YTM of the bonds? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25\%.) YTM % eTextbook and Media Attempts: 1 of 3 used Problem 13.19 a1-a3(a2) Your answer is correct. What is the after-tax cost of debt for this firm if it has a marginal tax rate of 34 percent? (Round final answer to 2 decimal places, e.g. 15.25\%.) After-tax cost of debt % Problem 13.19 a1-a3(a3) Your answer is incorrect. What is the current YTM of the bonds and after-tax cost of debt for this firm if the bonds are selling at par? (Round final answers to 2 decimal places, e.g. 15.25%.) YTM % After-tax cost of debt % eTextbook and Media
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