A company has a 1000 par value bond outstanding with 20, Ask an Expert

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A company has a $1000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest payment of $95, and is currently selling for $945 per bond. The company is in 35% tax bracket. Compute yield to maturity and make the appropriate tax adjustment to determine the after-tax cost of the debt.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92781708

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