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This question was created from CHapter 10 homework https://www.coursehero.com/file/19627225/CHapter-10-homework/

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10— 9 Bond field and After—Tax Cost of Debt A company ’s 6% coupon rate sew—E?
annual payment, $1, 000 par value bond that matures in 30 years sells at a;
price of $515.16 The company’ s federal-plus— state tax rate is 40%. What 15?; the firm s after—tax component cost of debt for purposes of calculating the I
WACC? (Hint: Base your answer on the nominal rate ]

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Bond yield is 12.00%... View the full answer

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