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Author Question: Canada Corp.s long-term bonds are currently priced to offer a yield-to-maturity of 6%. If Canada ... (Read 118 times)

joe3899

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on: Aug 7, 2023

Question 1

Canada Bank’s long-term bonds are currently priced to offer a yield-to-maturity of 10.6%. If Canada Bank’s marginal tax rate is 28%, what is the after-tax cost of debt on Canada Bank’s bonds?

◦

6.42%


◦

6.80%


◦

7.13%


◦

7.63%



Question 2

Canada Corp.’s long-term bonds are currently priced to offer a yield-to-maturity of 6%. If Canada Corp.’s marginal tax rate is 17%, what is the after-tax cost of debt on Canada Corp.’s bonds?

◦

4.98%


◦

5.50%


◦

5.88%


◦

6.25%

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Marked as best answer by joe3899 on Aug 7, 2023

ryanb

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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joe3899

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

aliotak

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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