Question: David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following information on the security: Par Value: $1,000 Cost: $930

David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following information on the security:

Par Value: $1,000

Cost: $930

Coupon rate: 6%

Years to maturity: 10

Tax Bracket 20%

a. Calculate the before tax cost of the Sony Bond

b. Calculate the after tax cost of the Sony bond given David's tax bracket

I know how to find it using a financial calculater, however, my professor doesn't allow us to use them on exams. Please show me your work thanks in advance

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