(Answered) A bond that has sar 1500 par value face value and a

Finance

A bond that has SAR 1,500 par value (face value) and a contract or coupon interest rate of 13 percent. A new issue would have a flotation cost of 9 percent of the $1,620 market value. The bonds mature in 15 years. The firm's aerage tax rate is 35 percent, and its marginal tax rate is 38 percent. DATA face value coupon interest rate flotation cost mrkt value years tax rate marginal tax rate Net price = Cost = After-Tax cost =

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