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The after tax cost of Par Value Corporations outstanding bond is 6.6%. If the firm is in the 34% tax bracket, what is the before tax cost (yield) of that debt?

The after tax cost of Par Value Corporation’s outstanding bond is 6.6%. If the firm is in the 34% tax bracket, what is the before tax cost (yield) of that debt?

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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Intermediate Financial Management

Intermediate Financial Management

ISBN: 978-1111530266

11th edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Posted Date: September 19, 2013 02:51:53
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