Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding
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Question:
Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 13 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 5 percent annually.
What is the company's pretax cost of debt?
If the tax rate is 22 percent, what is the aftertax cost of debt?
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