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What is zylexs total interest expense per year

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Reference no: EM13204126

Bond interest payments before and after taxes. Zylex Corp has issued 2,500 bonds with a total principal value of $2,500,000. The bonds have a coupon rate of 9.25 percent.

a. What dollar amount of interest per bond can an investor expect to receive each year from Zylex Corp?

b. What is Zylex's total interest expense per year associated with this bond issue?

c. Assuming that Zylex is in a 35 percent corporate tax bracket, what is the company's net after-tax interest cost associated with this bond issue?

Reference no: EM13204126

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