Question: The June Bug has a $720000 bond issue outstanding. These bonds have a 10.7 percent coupon, pay interest semiannually, and have a current market price

The June Bug has a $720000 bond issue outstanding. These bonds have a 10.7 percent coupon, pay interest semiannually, and have a current market price equal to 103 percent of face value. The tax rate is 36 percent. What is the amount of the annual interest tax shield?

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