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You know that the after-tax cost of debt capital for Blue Port is 9.8 per cent. If the company has only one issue of 5-year
You know that the after-tax cost of debt capital for Blue Port is 9.8 per cent. If the company has only one issue of 5-year maturity bonds outstanding, what is the current price of the bonds if the coupon rate on those bonds is 13.71 per cent? Assume the bonds make semiannual coupon payments and the corporate tax rate is 30 per cent.
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