A companys 6 coupon rate semiannual payment 1000 par value, Ask an Expert

Accounting

A company's 6% coupon rate, semiannual payment, $1000 par value bond that matures in 25 years sells at a price of $656.95 The company's federal-plus-state tax rate is 30%. What is the firm's after tax component cost of debt for purposes of calculating the WACC (base answer on nominal rate. Round answer to 2 decimal places. My answer was 12.87%, but that is not correct.

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Taxation, Accounting

Category:- Taxation
Reference No.:- M9751424

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