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Business, 07.05.2020 07:57 zainababbas25

Suppose a firm has a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9%, and coupons are paid semiannually. The bond is currently selling for $908.72. What is the after-tax cost of debt if the relevant tax rate is 40 percent?

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Suppose a firm has a bond issue currently outstanding that has 25 years left to maturity. The coupon...
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