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Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of...

Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.62 percent, a par value of $2,000 per bond, matures in 8 years, has a total face value of $4.2 million, and is quoted at 103 percent of face value. The second issue has a coupon rate of 6.42 percent, a par value of $1,000 per bond, matures in 24 years, has a total face value of $8.5 million, and is quoted at 91 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 40 percent. What is the firm's weighted average aftertax cost of debt?

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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