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24 July, 06:52

Mad corp. has 20-year bonds with an 8% coupon rate and a 10% yield to maturity. what would be mad's appropriate after-tax cost of debt if their tax rate is 40%?

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  1. 24 July, 06:56
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    With a 8% coupon rate and a 10% yield to maturity would produce a 6% after-tax cost of debt if their tax rate is 40%.
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