Apple's 9 Percent Annual Coupon Bond Has 10 Years Until

question 92

Multiple Choice

Apple's 9 percent annual coupon bond has 10 years until maturity and the bonds are selling in the market for $1,190. If the firm's after-tax cost of debt is 5 percent, what was the firm's tax rate?

• A)21.51 percent
• B)34.50 percent
• C)44.50 percent
• D)36.50 percent

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Definitions:

Ptosis

A medical term used to describe drooping of the upper eyelid, which can affect one or both eyes.

Glaucoma

A group of eye conditions that damage the optic nerve, often due to abnormally high pressure in the eye, leading to vision loss if untreated.

Myopia

A condition of the eyes where close objects appear clearly, but distant ones do not, commonly known as nearsightedness.

Sty

An infection of the sebaceous glands at the base of the eyelashes, resulting in a painful, red swelling on the eyelid.