Please answer the YTM for part C I got the wrong answer. Thank you! Problem 13.1

Question

Please answer the YTM for part C I got the wrong answer. Thank you!

Problem 13.19 You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 9.05 percent semi-annual coupon bonds are selling at a price of $1,099.56. These bonds are the only debt outstanding for the firm. Your answer is correct. What is the current YTM of the bonds? (Round intermediate calculations to 4 decimal places, eg, 1.2514 and final answer to 2 decimal places, e.g. 15.25% ) 7.76 % Open blank Show Work Copy Show Work from Previous attempt Click if you would like to Show Work for this question: SHOW SOLUTIONSHOW ANSWER LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 2 of 3 used

Explanation / Answer

if bond is selling at par ,Current YTM =Coupon rate = 9.05%

so YTM = 9.05%

After tax cost of debt = 9.05 (1 - .34) = 9.05 *.66 = 5.98%

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