Determine the after-tax cost to maturity

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Reference no: EM1310288

For each of the following $1000-par-value bond, assuming annual interest payment and a 40% tax rate, calculate the after-tax cost to maturity using the approximation formula.

Bond	Life	Underwriting fee	Discount (-) or Premium (+)	Coupon interest rate
A	20-years	$25	-$20	9%
B	16	40	+10	10%
C	15	30	-15	12%
D	25	15	Par	9
E	22	20	-60	11

Reference no: EM1310288

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