What after-tax cost of debt will wsb have to pay to attract


Problem

WSB Inc. currently has European-style bonds with 7 years to maturty, a face value of $1,000, and a coupon rate of 5%. The bonds are currently trading at $969 in the secondary market and WSB faces a tax rate of 33%. What after-tax cost of debt will WSB have to pay to attract more money from lenders?

Submit your answer in percentage form rounded to the basis point.

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Business Management: What after-tax cost of debt will wsb have to pay to attract
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