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You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 8.2 percent coupon bonds are selling at
You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 8.2 percent coupon bonds are selling at a price of $847.00. The bonds pay interest semiannually. If these bonds are the only debt outstanding, answer the following questions. Problem 13.17 a1-a2(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 O decimal places, e.g. 15%.) Current YTM for the bonds eTextbook and Media 10 % Attempts: 2 of 3 used Problem 13.17 a1-a2(a2) What is the after-tax cost of debt for this firm if it is subject to 30 percent marginal and average tax rates? (Round final answer to 2 decimal places, e.g. 15.25%.) After-tax cost of debt eTextbook and Media % SUPPORT
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