Determining the after tax cost of debt


ICU window is trying to calculate it cost of debt. the firm issues utstanding with 7 years to maturity that is quoted 108% of face value. The issuer make simiannual payments and have embedded cost of 7.4%. the annual tax rat is 38%. what is the icu pretax cost of debt? what is the after tax cost of debt?

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Finance Basics: Determining the after tax cost of debt
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