Gillian Stationery Corporation needs to raise ? $616,000 to to improve its manufacturing plant. It has decided to issue a $1000par value bond with an annual coupon rate of 7.7% with interest paid semiannually and a 15 year maturity. Investors require a rate of return of 10.2 %
a. Compute the market value of the bonds.
b. How many bonds will the firm have to issue to receive the needed? funds?
c. What is the? firm's after-tax cost of debt if the? firm's tax rate is 34 ?percent?