Business, 13.12.2019 02:31, 19colemankl

Suppose we have a bond issue currently outstanding that has 25 years left to maturity. the coupon rate is 9% and coupons are paid semiannually. the bond is currently selling for $908.72 per $1000 bond. if the firm's marginal tax rate is 30%. what's the firm's after-tax cost of

a) 3.5%

b) 5.0%

c) 6.3%

d) 7.0%

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Suppose we have a bond issue currently outstanding that has 25 years left to maturity. the coupon ra...