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Avicorp has a $13.5 million debt issue outstanding, with 5.8% coupon rate. He debt has semi-annual.. 1 answer below » Avicorp has a $13.5 million debt issue outstanding, with 5.8% coupon rate. He debt has semi-annual coupons the next coupon is due in six months and the debt matures in five years. It is currently priced at 96% of par value. A. What is Avicorp’s pre-tax cost of debt? Note Compute effective annual return. B. If Avicorp faces a 40% tax rate what is after tax cost of debt? The cost of debt if %per year If Avicorp faces a 40% tax rate, the after tax cost of debt is %. Oct 24 2015 11:45 AM
