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What is your after-tax cost of debt if your bond is trading for $975, with a face value of $1,000, and pays an annual co

Posted: Sun Jul 03, 2022 6:42 am
by answerhappygod
What is your after-tax cost of debt if your bond is trading for $975, with a face value of $1,000, and pays an annual coupon rate of 8%? Your tax rate is 21%. The bond was issued with a 10-year maturity and has 7 years left.