Question: 1- Using the cost of debt approximation formula, determine the cost before taxes for a bond that sells at $ 925 of its par value

1- Using the cost of debt approximation formula, determine the cost before taxes for a bond that sells at $ 925 of its par value and that pays a coupon of $ 85 for 20 years. The flotation costs are $ 5 per bond. You will have to show the counts. 2- For the case in problem 3, calculate the cost of debt after taxes if the company's tax liability is 40%. You will have to show the counts.

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