What is the interest rate needed on a 1000 face value 5


What is the interest rate needed on a $1,000 face value 5% coupon corporate bond in order to make it equivalent in terms of return to one whose interest rate is tax free? Assume the corporate tax rate is 30%.

Solution Preview :

Prepared by a verified Expert
Operation Management: What is the interest rate needed on a 1000 face value 5
Reference No:- TGS01535644

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)