Question
You are analyzing the cost of debt for a firm. You know that the firms 14-year maturity, 8.25 percent coupon bonds are selling at a
You are analyzing the cost of debt for a firm. You know that the firms 14-year maturity, 8.25 percent coupon bonds are selling at a price of $821.75. The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm. 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%.) The current YTM for the bonds % LINK TO TEXT What is the after-tax cost of debt for this firm if it has a 30 percent marginal and average tax rate? (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 %
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