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Business, 16.11.2020 17:50 wcraig1998

Rappaport Industries has 6,250 perpetual bonds outstanding with a face value of $1,400 each. The bonds have a coupon rate of 6.6 percent and a yield to maturity of 6.9 percent. The tax rate is 40 percent. What is the present value of the interest tax shield?

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Rappaport Industries has 6,250 perpetual bonds outstanding with a face value of $1,400 each. The bon...
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