A 1000 par bond is currently selling for 1100 it has a 9


A $1,000 par bond is currently selling for $1,100. It has a 9% coupon rate, fifteen years remaining to maturity, and pays interest semi-annually. If the firm's tax rate is 35%, what is the after-tax cost of debt?

9.00%

7.84%

6.07%

5.85%

5.10%

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Financial Management: A 1000 par bond is currently selling for 1100 it has a 9
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