Finance Lab Question 2-2 (Fixed)

Business & Finance
Tutor: None Selected Time limit: 1 Day

Nov 14th, 2014

Annual coupon rate = 0.08

Price of Bond = $99

Before tax cost of debt = 0.08/99 =0.00808= 0.0081

Before tax cost of debt = 8.1%

If tax rate is t 

after tax cost of debt = 8.1% *(1-t)

Nov 14th, 2014

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Nov 14th, 2014
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Nov 14th, 2014
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