The after tax cost of debt is

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Compute the cost of capital for the firm for the following: a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.1%. Interest payments are $55.50 and are paid semi annually. The bonds have a current market value of $1,127 and will mature in 10 years. The firms' marginal tax rate is 34%.

a. The after tax cost of debt is?

Reference no: EM131012560

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The after tax cost of debt is : Compute the cost of capital for the firm for the following: a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.1%. Interest payments are $55.50 and are paid semi annually. The after tax cost of debt is?

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