Question: lack to Assignment Attempts: Score: /1 13. Problem 10.01 (Alter Tax Cost of Debt) 2 eBook The Holmes Company's currently outstanding bonds have a 10%

lack to Assignment Attempts: Score: /1 13. Problem 10.01 (Alter Tax Cost of Debt) 2 eBook The Holmes Company's currently outstanding bonds have a 10% coupon and a 14% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity If its marginal tax rate is 40%, what is Holmes' after-tax cost of debt? Round your answer to two decimal places. % Save & Continue Continue without saving

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