Cody Inc. issued a bond at a discount $20. The bond matures in 20 years and has a coupon of 7.5%. payable semi annually.

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answerhappygod
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Cody Inc. issued a bond at a discount $20. The bond matures in 20 years and has a coupon of 7.5%. payable semi annually.

Post by answerhappygod »

Cody Inc. issued a bond at a discount $20. The bond matures in
20 years and has a coupon of 7.5%. payable semi annually. ABC
incurred $30 in underwriting costs on this issue. What is
the After tax cost from this Bond Issue, assuming a tax
rate of 25%?
If the answer is 3% enter 3.00
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