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What is the nominal annual pre-tax required rate of return

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Problem - A company has outstanding long-term bonds with a face value of $1,000, a 10% coupon rate, 25 years remaining until maturity, and a current market value of $1,214.82. If it pays interest semiannually, then what is the nominal annual pre-tax required rate of return on debt? If the company's tax rate is 40%, what is the after-tax cost of debt?

Reference no: EM132898971

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