The Holmes Company's currently outstanding bonds have a 9% coupon and an 11% yield to maturity....

Question

Question

The Holmes Companys currently outstanding bonds have a 9% coupon and an 11% yield to maturity. Holmes believes it could issu

Answer 1

Answer #1

After tax rate = YTM * (1-Tax rate)

After tax rate = 11 * (1-0.25)

After tax rate = 8.25

Answer 2

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