Question: Question 36 Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9% and coupons are

Question 36

Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9% and coupons are paid annually. The bond is currently selling for $968.72 per $1,000 bond. What is the before-tax cost of debt (YTM)?

		5.00%
		9.33%
		10.0%
		9.00%

Question 37

Based on the information from Question 36, if the firm's marginal tax rate is 20%. What's the firm's after-tax cost of debt?________

		3.58%
		5.08%
		6.32%
		7.46%

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