Delta Corp has 6.5% coupon semiannual bonds outstanding (face value of $1000), with 10 years left...

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Delta Corp has 6.5% coupon semiannual bonds outstanding (face value of $1000), with 10 years left...

Delta Corp has 6.5% coupon semiannual bonds outstanding (face value of $1000), with 10 years left to maturity, and a price of $840. The firm’s marginal tax rate is 25%. Delta’s marginal post-tax cost of debt is estimated to be:

6.98%

6.46%

6.54%

6.30%

6.72%

business finance

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Answer 1

Answer #1

COUPON RATE 6.50% YEARS TO MATURITY 10 NPER 20 (years to maturity x 2) PMT 32.5 (face value x coupon rate)/2 FACE VALUE $1,00

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Answer 2

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Delta Corp has 6.5% coupon semiannual bonds outstanding (face value of $1000), with 10 years left...

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Delta Corp has 6.5% coupon semiannual bonds outstanding (face value of $1000), with 10 years left...

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Delta Corp has 6.5% coupon semiannual bonds outstanding (face value of $1000), with 10 years left...