FI515 Financial Management:  9-2 LL Incorporated's currently outstanding 11% coupon bonds

FI515 Financial Management: 9-2 LL Incorporated's currently outstanding 11% coupon bonds

FI515 Financial Management

9-2 After-Tax Cost of Debt
LL Incorporated’s currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL’s after-tax cost of debt?
FI515 Financial Management: 9-2 LL Incorporated's currently outstanding 11% coupon bonds
.XLSX file (10.5KB)
$7
Total price:
$7