By what amount does the bond issuance increase the value, Financial Accounting

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By what amount does the bond issuance increase the value

Problem

Firm is going to fund an investment via debt. It issues 9 year bonds to fund its investment. The bonds have a yield of 0.08. The amount raised using these bonds is $1,961. First Firm is in the 0.31 tax bracket. By what amount does this bond issuance increase the value of First Firm?

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Financial Accounting: By what amount does the bond issuance increase the value

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Financial Accounting: By what amount does the bond issuance increase the value

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