Caculating Cost of Debt. Please Help!?

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Caculating Cost of Debt. Please Help!?

If a business issued a 30-year, 8 percent semiannual bond 8 years ago. The bond currently sells for 94 percent of its fact value. The company's tax rate is 35 percent.

What is the pretax cost of debt?
What is the aftertax cost of debt?

2007-07-25 10:59:55 · 1 answers · asked by Cindi 1 in Business & Finance ➔ Personal Finance

1 answers

This IS NOT a PERSONAL finance question. Your accounting homework belongs in a different category.

2007-07-25 12:54:50 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋