Suppose a zero-coupon is selling at 61400 today it
Suppose a zero-coupon is selling at $614.00 today. It promises to pay $1,000 in exactly 10 years with annual compounding. What is the firms after-tax cost of debt if this is the sole debt outstanding ( assuming the firm is in the 20% tax bracket)?
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suppose a zero-coupon is selling at 61400 today it promises to pay 1000 in exactly 10 years with annual compounding
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