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Calculate the? after-tax cost of debt for the bond

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Reference no: EM133001999

Problem 1: Calculate the? after-tax cost of debt for the following bond. The face value of the bond is ?$1,000?, interest is paid? annually, the coupon rate is 11?%, and the bond matures in 12 years. Assume that the corporate tax rate is 38?% and the issue price of the bond was ?$790.

Reference no: EM133001999

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