Calculate the after-tax cost of debt using yield to maturity

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Question - XYZ Company as bonds outstanding with 7 years left before maturity. The bonds are currently selling for $800 per $1000 face value. The interest is paid annually at a rate of 12 percent. The firm tax rate is 40 percent. Calculate the after-tax cost of debt using yield to maturity method.

Reference no: EM132947855

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