Calculate the ?before-tax cost of the sony bond

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Reference no: EM131989385

Sony Bond
Par value ? $1000	Coupon interest rate 6.5?%	Corporate tax rate 35?%
Cost $900	Years to maturity 10

Answer the following? questions:

a. Calculate the ?before-tax cost of the Sony bond using the? bond's yield to maturity? (YTM).

b. Calculate the ?after-tax cost of the Sony bond given the corporate tax rate.

a. The before-tax cost of the Sony bond using the? bond's yield to maturity? (YTM) is ___ ?%.

?(Round to two decimal? places.)

Reference no: EM131989385

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