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Waste Deep Disposal Services Are Considering Refunding a $525,000,000 Bond

question 19

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Waste Deep Disposal Services are considering refunding a $525,000,000 bond issue.The old bonds have a 7.25% coupon rate.The new bonds will have a 6% coupon rate.Both issues will be outstanding for about four weeks.What is the overlapping interest if the company is in the 38% tax bracket (rounded) ?

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