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Calculate the before-tax cost of debt

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Question - Tomtom Co. issued a 30-year bond, with a coupon of 4.3%, making semiannual payments and a par value of $1,000. The bond currently sells for 115% of par. The company's tax rate is 21%.

A) Calculate the before-tax cost of debt.

B) Calculate the after-tax cost of debt.

Reference no: EM132758699

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