Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Rockingham Motors issued a 30-year, 8 percent semiannual bond 3 years ago. The bond currently sells for 103.1 percent of its face value. The company's tax
rate is 21 percent. What is the aftertax cost of debt?
Multiple Choice
O
6.10%
2.72%
О
О
О
5.69%
5.10%
5.99%
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Transcribed Image Text:Rockingham Motors issued a 30-year, 8 percent semiannual bond 3 years ago. The bond currently sells for 103.1 percent of its face value. The company's tax rate is 21 percent. What is the aftertax cost of debt? Multiple Choice O 6.10% 2.72% О О О 5.69% 5.10% 5.99%
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