What is the pre-tax cost of debt what is the after-tax cost


Pearce’s Cricket Farm issued a 30 year, 8 percent semiannual bond 3 years ago. The bond currently sells for $930. The company’s tax rate is 35 percent. Assume the par value of the bond is $1000.

What is the pre-tax cost of debt?

What is the after-tax cost of debt?

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Financial Management: What is the pre-tax cost of debt what is the after-tax cost
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