After-tax cost of debt-pretax cost of debt


Waterford Corp. issued a 30 year, 8 % semi-annual bond 7 years ago. The bond currently sells for 95% of its face value. The company's tax rate is 34%. What is the pretax cost of debt? What is the after-tax cost of debt?

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Finance Basics: After-tax cost of debt-pretax cost of debt
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