Determine the after-tax cost of debt for the firm

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Reference no: EM132032455

A Treasury Bond with 9 years remaining pays interest of $34.50 every six months. The current yield on the bond is 7.77%. Determine the after-tax cost of debt for the firm based on this bonds yield to maturity. Assume the tax rate is 40%

Hint: First determine the price of the bond.

Reference no: EM132032455

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