Answered You can hire a professional tutor to get the answer.
Current cost of a bond: You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 10.95 percent coupon bonds are...
Current cost of a bond: You are analyzing the cost of debt for a firm. You know that the firm’s 14-year maturity, 10.95 percent coupon bonds are selling at a price of $1,185.55. The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm, what is the after-tax cost of debt for this firm if the firm is in the 30 percent marginal tax rate?1. The current YTM for the bonds = ______%2. After-tax cost of debt =_____%