You know that the after$-$tax cost of debt capital for Sandhill Company is $11\mathrm{.}2$ percent. If the firm has only one issue of five$-$year bonds outstanding. Assume the bonds make semiannual coupon payments and the marginal tax rate is $30$ percent. Assume the par value of the bonds is $$1,000.$

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$Pr$

Calculate the pre$-$tax cost of debt capital.

Pre$-$tax cost of debt capital

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eTextbook and Media

Problem $13\mathrm{.}15$ a$1-$a$2($Excel Video$)($a$2)$

Using multiple attempts will impact your score.

$50\%$ score reduction after attempt $2$

Attempts: $1$ of $3$ used

What is the current price of the bonds if the coupon rate on those bonds is $16$ percent?

Current price of the bonds

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eTextbook and Media

Attempts: $1$ of $3$ used

Using multiple attempts will impact your score.

$50\%$ score reduction after attempt $2$