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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, 14.50 percent semiannual coupon bonds are
You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12 -year maturity, 14.50 percent semiannual coupon bonds are selling at a price of $1,090. Assuming that these bonds are the only debt outstanding for the firm. Problem 13.19 a1-a3(a1) What is the current YTM of the bonds? (Round intermediate calculations to 4 decimal places, eg. 1.2514 and final answer to 2 decimal places, eg. 15.25\%.) YTM % Attempts: 1 of 3 used Problem 13.19 a1-a3(a2) 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 % 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, eg. 15.25\%.) YTM % After-tax cost of debt %
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