Question $14$

The June Bug has a $$340,000$ bond issue outstanding. These bonds have a coupon rate of $6\mathrm{.}25$ percent, pay interest semiannually,

and sell at $101\mathrm{.}2$ percent of face value. The tax rate is $21$ percent. What is the amount of the annual interest tax shield?

Excel Template.xlsx

$$7,437\mathrm{.}50$

$$21,505\mathrm{.}00$

$$4,462\mathrm{.}50$

$$21,250\mathrm{.}00$

$$5,311\mathrm{.}22$

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