【单选题】Suppose the annual yield of corporate bond for firm A is 12%, the firm’s marginal tax rate is 40%, the flotation cost of the bond is 5% of the dollar amount issued. Then the cost of bond for firm A is
【单选题】What is the current yield on a five-year 5% coupon bond with $100 face value? Suppose the bond’s yield to maturity is 7%. Assume annual compounding.
【单选题】Suppose the interest rate on a taxable corporate bond is 10% and the marginal tax rate is 2.5%. What is the equivalent tax-free interest rate on this bond?