A bond that has a 1000 par value face value and a contract, Financial Management

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A bond that has a 1000 par value face value and a contract

A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11.2 percent. Interest payments are $56.00 and are paid semiannually. The bonds have a current market value of $1128 and will mature in 10 years. The firm marginal tax rate is 34 percent. The after-tax cost of debt is what percent?

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Financial Management: A bond that has a 1000 par value face value and a contract

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Financial Management: A bond that has a 1000 par value face value and a contract

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