To calculate after tax cost of debt, the before tax cost of debt is multiplied by (1-T)
TWC's after tax cost of debt = 11.1% *(1-25%) = 8.32%
Par Value of the bond(FV) = 1000
Price of the bond(PV) = 1,181.96
Number of periods, nper = 20
Annual coupons (PMT) = 13% * 1000 = 130
Yield to maturity for the bond = = 10.75%
After tax cost of debt = 10.75*(1-25%) = 8.06%
please complete all parts to the question 2. An overview of a firm's cost of debt...
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