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L Incorporated's currently outstanding 9% coupon bonds have a yield to maturity of 6.2%. LL believes it could issue new

Posted: Fri Jul 01, 2022 7:51 am
by answerhappygod
L Incorporated's currently outstanding 9% coupon bonds have ayield to maturity of 6.2%. LL believes it could issue new bonds atpar that would provide a similar yield to maturity. If its marginaltax rate is 25%, what is LL's after-tax cost of debt? Round youranswer to two decimal places.
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