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Home › Forums › ACCA Forum › P4 Advanced Financial Management Forums › after tax cost of redeemable debt
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eg, if $100 10% bond redeemable in 5 yrs @ par, tax=30%.
Gross yield uses $10 interest pa but net yield uses $10(0.7) =$7
Say gross yield =G% and net yield=N%
how should u calc. the after tax cost?
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