Question: YC Co has 10% irredeemable loan notes in issue, currently traded at 90% cum-interest. If the tax rate changes from 20% to 30% for the

YC Co has 10% irredeemable loan notes in issue, currently traded

YC Co has 10% irredeemable loan notes in issue, currently traded at 90% cum-interest. If the tax rate changes from 20% to 30% for the company, what will happen to the cost of irredeemable debt? a. Increases to 9.4% b. Increases to 8.4% c. Decreases to 9.4% d. Decreases to 8.75% TV

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