Calculate the ?after-tax cost of the sony bond

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?Before-tax cost of debt and? after-tax cost of debt Personal Finance Problem David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following information on the? security: Sony Bond Par value ? $1000 Coupon interest rate 8.0?% Corporate tax rate 25?% Cost $900 Years to maturity 10.

Answer the following? questions:

a. Calculate the ?before-tax cost of the Sony bond using the? bond's yield to maturity? (YTM).

b. Calculate the ?after-tax cost of the Sony bond given the corporate tax rate.

Reference no: EM131832396

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