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You are analyzing the cost of debt for a firm You know that the firms 14year maturity 66 percent coupon bonds are selling at a price of $68073 The bonds pay interest semiannually If these bond

You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 6.6 percent coupon bonds are selling at a price of $680.73. The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm, answer the following questions. What is the current YTM of the bonds? What is the after-tax cost of debt for this firm if it has a 30 percent marginal and average tax rate?
 

Apr 16 2020 View more View Less

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