A 1000 par value bond issued by xyz company has 16 years to


A $1000 par value bond issued by XYZ Company has 16 years to maturity.The bond pays $78 per year in interest and is currently selling for $880.00.

What is the approximate yield to maturity?

If the firm is in the 30% tax bracket, what is the after tax cost of debt?

 

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Finance Basics: A 1000 par value bond issued by xyz company has 16 years to
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