Question 9.S-TQ2: The 8 per cent irredeemable bonds of Eranio plc are currentl...

Corporate Finance Principles and Practice [693350]

The 8 per cent irredeemable bonds of Eranio plc are currently trading at £92 per £100 bond. If the company pays corporation tax at a rate of 30 per cent, what is the current after-tax cost of debt of the bonds?

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