Cost of debt using the approximation formula

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Reference no: EM131517142

Cost of debt using the approximation formula: For the following $1,000-par-value bond, assuming annual interest payment and a 30% tax rate, calculate the after tax cost to maturity using the approximation formula.

Life-20 years

underwriting fee-$30

Discount (-) or Premium (+) -(-30)

Coupon Interest rate-8%

Reference no: EM131517142

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