before tax cost of bond using IRR, Corporate Finance

Assignment Help:
David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following information on the security:
Par value $1000, coupon interest rate 6.0%, corporate tax rate 40%, cost $960, years to maturity 10 years.
a. Calculate the before tax cost of the sony bond by determining the bond''s return
b. Calculate the after tax cost of the sony bond given David''s tax bracket

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