Calculate the before-tax cost of the sony bond using the


Sony Bond

Par value ? $1000

Coupon interest rate

6.5?%

Corporate tax rate

35?%

Cost $900      

Years to maturity 10  


Answer the following? questions:

a. Calculate the ?before-tax cost of the Sony bond using the? bond's yield to maturity? (YTM).

b. Calculate the ?after-tax cost of the Sony bond given the corporate tax rate.

a. The before-tax cost of the Sony bond using the? bond's yield to maturity? (YTM) is ___ ?%.

?(Round to two decimal? places.)

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Financial Management: Calculate the before-tax cost of the sony bond using the
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