The before-tax cost of debt-after tax cost of debt

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Reference no: EM131893185

1. Stringer Bell has $1,200 par value bonds outstanding at 12 percent interest. The bonds will mature in 30 years. Compute the current price of the bonds if the present yield to maturity is:

a. 8 percent.

b. 11 percent.

c. 15 percent.

2. The before-tax cost of debt is_____ the after tax cost of debt.

A. The same as

B. Higher than

C. Lower than

Reference no: EM131893185

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