Cost of Debt Assignment
13.20 Value of debt for a agency: You're analyzing the after-tax value of debt for a agency. that the agency’s 12-year maturity, 9.5 p.c coupon bonds are promoting at a worth of $1,200. If these bonds are the one debt excellent for the agency, what's the after-tax value of debt for this agency if the marginal tax fee for the agency is 34 p.c? What if the bonds are promoting at par? Maturity 12 Coupon fee 9.50% Present bond worth $1,200 Tax fee 34% Par worth $1,000 Coupon frequency 2 After-tax value of debt (at present worth) After-tax value of debt (if promoting at par) Get Finance homework help immediately