FIN 3123 -The June Bug has a $400,000,000 bond issue outstanding
June 7th, 2024
The June Bug has a $400,000,000 bond issue outstanding. These bonds have a 9 percent coupon, pay interest semiannually in perpetuity, and have a current market price equal to 90.00 percent of par value. The tax rate is 28.00 percent. What is the amount of the after-tax annual interest payment made by the firm?