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| Teaching Since: | Apr 2017 |
| Last Sign in: | 419 Weeks Ago, 1 Day Ago |
| Questions Answered: | 3232 |
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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Notable Nothings plans to issue new bonds with the same yield as its existing bonds. The existing bonds have a coupon rate of interest equal to 5.6 percent (semiannual interest payments), 12 years remaining until maturity, and a $1,000 maturity value; they are currently selling for $918 each. (a) If Notable issues new bonds today, what will be its before-tax cost of debt? (b) What will be its before-tax cost of debt if the price of its existing bonds is $730 when Notable issues the new bonds?
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