Question: Solve the problem using an easy to understand approach 17. JS has in issue $200m of long-dated bonds issued at par and paying a coupon

Solve the problem using an easy to understand approach

17. JS has in issue $200m of long-dated bonds issued at par and paying a coupon rate of 11%. The bonds are currently trading at $105 per $100 nominal. The tax rate is 20%. Calculate the post-tax cost of debt for JS to the nearest 0.1%: *

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