The coupon rate of a debt issue 20 years to maturity is 9


The coupon rate of a debt issue ( 20 years to maturity) is 9%. If the yield to maturity on the debt is 11%. The face amount of the bonds is 1,000. What is the after tax cost of debt if the firm's tax rate is 40%?

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Finance Basics: The coupon rate of a debt issue 20 years to maturity is 9
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