A bond selling to yield 12 percent after flotation costs, but before adjusting for the...
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Finance
A bond selling to yield 12 percent after flotation costs, but before adjusting for the marginal corporate tax rate of 21 percent. In other words, 12 percent is the rate that equates the net proceeds from the bond with the present value of the future cash flows (principal and interest). What is the after-tax cost of debt on the bond?
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