New bonds that would provide a similar yield to maturity

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Reference no: EM131326969

Your firm has outstanding bonds with a 0.13 coupon and 0.10 yield to maturity. Your CFO believes that you can issue new bonds that would provide a similar yield to maturity. If your marginal tax rate ir 0.40, what is your firm's after-tax cost of debt? (Show work and equations)

Reference no: EM131326969

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