BUSN 379- What is the interest rate needed on a $1,000 face value 5% coupon
Question # 00351021
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Updated on: 08/02/2016 12:07 AM Due on: 08/02/2016
What is the interest rate needed on a $1,000 face value 5% coupon corporate bond in order to make it equivalent in terms of return to one whose interest rate is tax free? Assume the corporate tax rate is 30%.
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Solution: BUSN 379- What is the interest rate needed on a $1,000 face value 5% coupon