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What is the amount of the annual interest tax shield

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The Clothing Shop has 6,000 bonds outstanding with a face value of 1,000 each, a $1, market price of $986, and a coupon rate of 6.84 percent. The interest is paid semiannually. What is the amount of the annual interest tax shield if the tax rate is 28 percent?

Reference no: EM132466989

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