Great Lakes Packaging has two outstanding bond issues. The first issue was quoted with a coupon rate
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Great Lakes Packaging has two outstanding bond issues. The first issue was quoted with a coupon rate of 3.52 percent, a face value of $1,000 per bond, a maturity of 3 years, a total nominal value of $3.7 million, and 103 percent of face value. The second issue has a coupon rate of 6.02 percent, has a face value of $2,000 per bond, is due in 22 years, is quoted at $8.0 million with a total par value and 96 percent of face value. Both bonds pay interest every six months. The company's tax rate is 35 percent.
What is the firm's weighted average after-tax cost of debt?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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