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Firms after-tax cost of debt on the bond

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Belton distribution company is issuing a 1,000 par value bond that pays 7.0 percent annual interest and matures in 15 years that is paid semi-annually. Investors are willing to pay 958 for the bond T he company is in the 18 percent marginal tax bracket what is the firms after-tax cost of debt on the bond?

Reference no: EM131248303

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