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Is the PV Tax savings on normal debt interest affected when the debt is redeemable vs. irredeemable?
In both cases it is the present value of the tax saving on the interest payment. In the case of irredeemable debt the savings will be in perpetuity and so you discount the savings as a perpetuity. In the case of redeemable debt, the savings will only be for the number of years up to redemption, and so you discount as an annuity.
I explain this in my free lectures on APV.
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