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Business, 12.08.2019 19:20 linnybear300

Tangshan mining is considering issuing longminusterm debt. the debt would have a 30 year maturity and a 6 percent coupon rate and make semiannual coupon payments. in order to sell the issue, the bonds must be underpriced at a discount of 1 percent of face value. in addition, the firm would have to pay flotation costs of 1 percent of face value. the firm's tax rate is 21 percent. given this information, the afterminustax cost of debt for tangshan mining would be

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