karen8317 karen8317

02-11-2022
Business

Answered

at the present time, three waters company (twc) has 10-year noncallable bonds with a face value of $1,000 that are outstanding. these bonds have a current market price of $1,092.79 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. the company incurs a federal-plus-state tax rate of 25%. if twc wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (note: round your ytm rate to two decimal place.)

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