Bond interest payments before and after taxes Charter Corp. has issued 2,331 debentures with a total principal value of ?$2,331,000.The bonds have a coupon interest rate of 8?%.
a. What dollar amount of interest per bond can an investor expect to receive each year from? Charter?
b. What is? Charter's total interest expense per year associated with this bond? issue?
c. Assuming that Charter is in a 35?% corporate tax? bracket, what is the? company's net? after-tax interest cost associated with this bond? issue?
Bond valuation-Annual interest Calculate the value of the bond shown in the following? table, assuming it pays interest annually.
Par value Coupon interest rate Years to maturity Required return
$1,000 8% 6 9%
The value of the bond is ?$ ______