Outstanding Debt of Home Depot Trades with a Yield to Maturity

question 47

Multiple Choice

Outstanding debt of Home Depot trades with a yield to maturity of 8%.The tax rate of Home Depot is 35%.What is the effective cost of debt of Home Depot?

• A)5.2%
• B)5.8%
• C)6.2%
• D)6.5%

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Definitions:

NDP

Net Domestic Product; it calculates the total value of all goods and services produced within a country in a specific period minus depreciation.

Intermediate Product

Goods that are used in the production process to make other goods, rather than being bought by consumers.

National Income Accountants

Specialists who compile national accounts, a system of accounts that provides detailed information on the economic activities and output of a nation, such as GDP, national income, and expenditure.

Material Well-being

A measure of the quantity and quality of goods and services available to an individual or society.