Disassociated press has issued bonds

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Reference no: EM132033129

Disassociated Press has issued bonds with an 8 percent coupon rate, a $1,000 face value, and maturity in 23 years. The bonds make semi-annual coupon payments. The corporate tax-rate is 40%. Determine Disassociated Press's after-tax cost of debt if the bonds sell for $900 per bond and Disassociated Press anticipates that new bonds will have flotation costs of $30 each.

Reference no: EM132033129

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