What is the after-tax cost of debt for wasser inc

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Wasser, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted at 97 percent of face value. The issue makes semiannual payments and has a coupon rate of 10 percent. The tax rate is 25 percent. Enter your answers as a percent rounded to 3 decimal places, e.g., enter 32.161% as 32.161, not 0.32161. Hint. Solve for the YTM and adjust for taxes.

Problem 1: The after-tax cost of debt is

Reference no: EM132828604

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