Multiple Choice
The June Bug has a $565,000 bond issue outstanding. These bonds have a coupon rate of 6.65 percent, pay interest semiannually, and sell at 98.7 percent of face value. The tax rate is 21 percent. What is the amount of the annual interest tax shield?
A) $7,573
B) $6,907
C) $8,333
D) $7,890
E) $8,250
Correct Answer:
Verified
Correct Answer:
Verified
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