At the present time, Andalusian Limited ( AL ) has 5 - year noncallable bonds with a
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Question:
At the present time, Andalusian Limited AL has year noncallable bonds with a face value of $ that are outstanding. These bonds have a current market price of $ per bond, carry a coupon rate of and distribute annual coupon payments. The company incurs a federalplusstate tax rate of If AL wants to issue new debt, what would be a reasonable estimate for its aftertax cost of debt rounded to two decimal placesNote: Round your YTM rate to two decimal place.
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