Question: Christy Issues bonds with a $1,000,000 par value and a 6.5% coupon rate. The bonds mature in 7 years, and coupon payments are semi -annual.

Christy Issues bonds with a $1,000,000 par value and a 6.5% coupon rate. The bonds mature in 7 years, and coupon payments are "semi -annual". The bond is currently priced at 760,325.00. Calculate the bonds YTM. Calculate the after tax cost of debt (marginal tax rate is 35%)?

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