What is bellamee after-tax cost of debt financing

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Reference no: EM131928634

Bellamee Company has bonds outstanding with five years to maturity and a face value of $5,000. The bonds are currently priced at their face value. If the bonds have a coupon rate of 20 percent, then what is Bellamee's after-tax cost of debt financing (in percent) if the tax rate is 50 percent?

Reference no: EM131928634

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