jiminy's cricket farm issued a 30-year, 7 percent semiannual bond 3 years ago. the bond currently sells for 93 percent of its face value. the compnay's tax rate is 22 percent. what is the pretax cost of debt? what is the aftertax cost of debt Please use Excel Formulas

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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jiminy's cricket farm issued a 30-year, 7 percent semiannual bond 3 years ago. the bond currently sells for 93 percent of its face value. the compnay's tax rate is 22 percent. what is the pretax cost of
debt? what is the aftertax cost of debt Please use Excel Formulas
Transcribed Image Text:jiminy's cricket farm issued a 30-year, 7 percent semiannual bond 3 years ago. the bond currently sells for 93 percent of its face value. the compnay's tax rate is 22 percent. what is the pretax cost of debt? what is the aftertax cost of debt Please use Excel Formulas
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