Dollar amount of interest per bond

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Charter Corp. has issued 2,339 debentures with a total principal value of $2,339,000. The bonds have a coupon interest rate of 9%.

a. What dollar amount of interest per bond can an investor expect to receive each year fromCharter?

b. What isCharter's total interest expense per year associated with this bondissue?

c. Assuming that Charter is in a 1515%corporate tax bracket, what is the company's net after-tax interest cost associated with this bond issue?

 

Reference no: EM131234483

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