A company has just issued 4 year zero coupon bonds with a maturity value of $1,000 and a yield to maturity of 9 percent The company 's tax rate is 40 percent What is the after tax cost of debt for the company ...

A company has just issued 4-year zero coupon bonds with a maturity value of $1,000 and a

Question:

A company has just issued 4-year zero bonds with a value of $1,000 and a yield to of 9 percent. The company's tax rate is 40 percent. What is the after-tax for the company?
Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...