What is the present value of the interest tax shield

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Question: Newborn Nursery has 12,000 bonds outstanding with a face value of $1,000 each. The coupon rate is 6.9 percent and the tax rate is 34 percent. What is the present value of the interest tax shield? $4.14 million $4.86 million $3.87 million $3.92 million $4.08 million I'm getting 4.800 12000x 100 x .069 then 828000 x .40 then 331200 / .069 not sure what im doing wrong please show work

Reference no: EM132017831

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