These bonds have a face value of 1000 and a current market, Financial Management

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These bonds have a face value of 1000 and a current market

Gotham Wear has bonds outstanding that mature in 18 years, pay interest annually, and have a coupon rate of 8.5 percent. These bonds have a face value of $1,000 and a current market price of $900. What is the company's aftertax cost of debt if its tax rate is 35 percent?

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Financial Management: These bonds have a face value of 1000 and a current market

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