What is after-tax cost of debt

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1. Tiny Tots has debt outstanding, currently selling for $900 per bond. It matures in 15 years, pays interest annually, and has a 12% coupon rate. Par is $1,000, and the firm's tax rate is 20%. What is the after-tax cost of debt?

The after-tax cost of debt for Tiny Tots is ()%. (Round to two decimal places.)

2. Rovers's Dog Care has outstanding debt currently selling for $840 per bond. It matures in 13 years, pays interest semiannually, and has a coupon rate of 13%. If par is $1,000 and the tax rate is 35%, what is the after-tax cost of debt?

The after-tax cost of debt for Rover's Dog Care is ()%. (Round to two decimal places.)

Reference no: EM132044392

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