Question: David Abbott is intersted in purchasing a bond issued by Sony. He has obtained the following information on the security: Sony Bond Par value $1,000

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

Sony Bond
Par value $1,000 Coupon interest rate 6% Tax bracket 40%
Cost $960 Years to maturity 10

Answer the following questions. a- Calculate the after-tax cost of the Sony bond given David's tax bracket

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