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You are analyzing the cost of debt for a firm. You know that the firm's 1 4 - year maturity, 6 . 6 percent coupon
You are analyzing the cost of debt for a firm. You know that the firm's year maturity, percent coupon bonds are selling at a price of $ The bonds pay interest semiannually. If these bonds are the only debt outstanding, answer the following questions.
What is the current YTM of the bonds? Round intermediate calculations to decimal places, eg and final answer to O decimal places, eg
Current YTM for the bonds
What is the aftertax cost of debt for this firm if it is subject to percent marginal and average tax rates? Round final answer to decimal places, eg
Aftertax cost of debt
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