What will the firms after-tax cost of debt

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A company plans a new issue of bonds with a par value of $1,000, a maturity of 20 years, and a semi-annual coupon rate of 16.0%. Currently, the bond is selling for $842.00. The firm's marginal tax rate is 30%. What will the Firm’s after-tax cost of debt?

Reference no: EM13720788

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