Rappaport Industries has 5,500 perpetual bonds outstanding with a face value of $2,000 each. The bonds have a coupon rate of 6.5 percent and a yield to maturity of 6.8 percent. The tax rate is 34 percent. What is the present value of the interest tax shield?

Answer rating: 100% (QA)

To find the present value of the interest tax shield we first need to calcula... View the full answer