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Business, 17.08.2021 17:50 oreonb11

A corporate bond has a face value of $1,000 and a coupon rate of 5%, paid annually. The bond matures in 15 years and has a current market price of $925. 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%, paid annually. The bond matures...
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