Business, 22.04.2020 03:17 lesliegomez09
The Yerby Company’s currently outstanding bonds have a 10.5 percent coupon and a 13.4 percent yield to maturity. Yerby believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40 percent, what is Yerby’s after-tax cost of debt?
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