A company plans a new issue of bonds with a par value of, Ask an Expert

Management Studies

A company plans a new issue of bonds with a par value of $1,000, a maturity of 20 years, and a semi-annual coupon rate of 16.0%. Currently, the bond is selling for $842.00. The firm's marginal tax rate is 30%. What will the Firm’s after-tax cost of debt?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M91260175

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