Multiple Choice
The approximate after-tax cost of debt for a 20-year, 7 percent, $1,000 par value bond selling at $960 (assume a marginal tax rate of 40 percent) is ________.
A) 4.43 percent
B) 5.15 percent
C) 7 percent
D) 7.35 percent
Correct Answer:
Verified
Correct Answer:
Verified
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