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red mountain inc has bonds outstanding that are currently quoted at 99.5% of par. The...

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Finance

red mountain inc has bonds outstanding that are currently quoted at 99.5% of par. The bonds mature in 11 years, have a 1000 face value and carry a 10 percent coupon with semiannual payments. What is the firms after tax cost of debt if the applicable tax rat is 25 %?

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