Today Melton Corporation's bonds sold for $1087.50.  If the bond's annual coupon payment a is $75.00 , it matures in 20 years and the company has a tax rate of 25%, what is  after tax cost to the firm of the funds raised through the sale of these bonds.

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A: The annual coupon payment on the bond is calculated below

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A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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A: Cost of debt is the after tax yield to maturity of bond based on the prices given in the bond and…