J& r renovation, inc., is trying to determine its cost of debt. the firm has a debt issue outstanding with 16 years to maturity that is quoted at 106 percent of face value. the issue makes semiannual payments and has a coupon rate of 6 percent annually. what is the company’s pretax cost of debt?

if the tax rate is 35 percent, what is the aftertax cost of debt?

After tax cost of debt = 5.44*(1-0.35)% = 3.54%

Explanation:

PV = 106

PMT = 6/2 =-3

N = 16*2 = 32 semi annual

FV = -100

Semi annual yield = 2.72%

Annual cost of debt = 2.72%*2 = 5.44%

After tax cost of debt = 5.44*(1-0.35)% = 3.54%

Using Rate function in Excel or Financial calculator

b. condominum i think

i believe the answer is: streets and roads

public property refers to the property that can be used by all legal citizens in a certain country. the public property was created and maintain using the government budget that allocated specifically for it. the budget itself come from the citizen's income tax payment.