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What is the yield to maturity on the bonds

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JB Fletcher, Inc has an outstanding bond issue, which has eight years remaining to maturity and a coupon rate of 3.250%. Interest payments are made semi-annually, the firm's tax rate is .32, and the bonds are currently trading at $995.00.

A. What is the yield to maturity on the bonds?

B. Ignoring flotation costs, what is the firm's cost of debt (before tax)?

C. What is its after-tax cost of debt?

Reference no: EM133122062

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