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Business, 19.03.2020 20:12 breezer20042

Micro Advantage issued a $5,250,000 par value, 15-year bond a year ago at 94 (i. e., 94% of par value) with a stated rate of 10%. Today, the bond is selling at 115 (i. e., 115% of par value). If the firm’s tax bracket is 30%, what is the current after-tax cost of this debt?

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Micro Advantage issued a $5,250,000 par value, 15-year bond a year ago at 94 (i. e., 94% of par valu...

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