Question: Please show all calculations. If using Excel, please show formulas and data. Practice 6: ***these are corporate bonds that pay 2x annually Ernie's has 3,500

Please show all calculations. If using Excel, please show formulas and data.

Practice 6:

***these are corporate bonds that pay 2x annually

Ernie's has 3,500 bonds outstanding with a face value of $1,000 each and a coupon rate of 8.5 percent. What is the amount of the annual interest tax shield if the tax rate is 34 percent?

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