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Business, 18.05.2021 19:10 bunnles

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 20 years and has a current market price of $900. If the corporation sells more bonds, it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital

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A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 20 years an...
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