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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, 6.50 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, 6.50 percent semiannual coupon bonds are selling at a price of $610.30. These bonds are the only debt outstanding for the firm. X Your answer is incorrect. What is the current YTM of the bonds? (Round final answer to 2 decimal places, e.g. 15.25%.) YTM 11.86 % e Textbook and Media What is the after-tax cost of debt for this firm if it has a marginal tax rate of 34 percent? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) After-tax cost of debt % e Textbook and Media * 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 intermediate calculations to 4 decimal places, e.g. 1.2514 and final answers to 2 decimal places, eg. 15.25%.) YTM % After-tax cost of debt %
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