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Mojo Mining has a bond outstanding that sells for $1,058 and matures in 24 years. The...

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Finance

Mojo Mining has a bond outstanding that sells for $1,058 andmatures in 24 years. The bond pays semiannual coupons and has acoupon rate of 6.02 percent. The par value is $1,000. If thecompany's tax rate is 35 percent, what is the aftertax cost ofdebt? Multiple Choice 5.29% 3.63% 5.67% 3.40% 3.90%

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After tax cost of debt YTM 1 Tax rate Here YTM Yield to maturity i Tax rate 35 or 035 ii YTM Coupon F Pn F P2 Here F Face value 1000 P Market price    See Answer
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