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Business, 12.08.2021 22:40 Aidanjsauer

A company has outstanding long-term bonds with a face value of $1,000, a 10% coupon rate, 25 years remaining until maturity, and a current market value of $1,214.82. If it pays interest semi-annually, and the company s tax rate is 40%, what is the after-tax cost of debt? a. 4.80%.
b. 4.50%.
c. 5.20%.
d. 3.50%.

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A company has outstanding long-term bonds with a face value of $1,000, a 10% coupon rate, 25 years r...
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