apparently this is not the correct answer so please don't give me this again haha I dont understand good luck to you!

Problem 11-10 Approximate yield to maturity and cost of debt [LO11-3) Russel Container Corporation has a $100 par value bond outstanding with 20 years to maturity. The b e a r est payment of $130 and is currently selling for 800 per bond Fussell Corp. isina 25 percent tax bracket. The wishes to know what theatertax cost of a new bond issue is likely to be. The yield to maturity on the new issue will be the same as the weldo maturity on the old in the the risk and maturity date will be similar. Compute the yield to maturity on the old and this as the yeld for the new issue. (Do not found intermediate calculation Input your answer as a percent rounded to 2 decimal places.) Answer complete but not entirely correct. Danton intermediate enles your Mik r o men to determine the aftertos costos newer as a percent rounded to 2 decimal places) O e r is complete but not entirely correct. Solution: FV = $1000 Crrent Price = $800 Assuming coupon payment is semi-annual Coupon = $130 per year = $130/2 = $65 Maturity = 20 Years = 20 * 2 = 40 period Part A) Now using approximate YTM formula C + F-P Approx YTM => F+P C = Coupon/Interest Payment F= Face Value P= Price n = years to maturity 65 + 1000-800 40 1000+800 YTM = 65 +5 YTM = 900 YTM = 7.78% Annual Yield = 7.78% *2 = 15.56% Part B ) After tax cost of debt = Pre-tax cost of debt * (1- tax rate ) = 15.56% * (1-0.25) = 11.67%