Crandal dock works is undergoing a major expansion the, Financial Management

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Crandal dock works is undergoing a major expansion the

Crandal Dock works is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each. Five Rivers flotation expense on the new bonds will be $50 per bond. Crandal's marginal tax rate is 35%. What is the yield to maturity on the newly-issued bonds?

a. 7.99%

b. 9.82%

c. 8.17%

d. 6.95%

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Financial Management: Crandal dock works is undergoing a major expansion the

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Financial Management: Crandal dock works is undergoing a major expansion the

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