The coupon rate on an issue of debt is 11 the yield to


Question: The coupon rate on an issue of debt is 11%. The yield to maturity on this issue is 12%. The corporate tax rate is 31%. What would be the approximate after-tax cost of debt for a new issue of bonds? (Round your answer to 2 decimal places.)

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Finance Basics: The coupon rate on an issue of debt is 11 the yield to
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