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Bond interest payments before and after taxes   Charter Corp. has issued 1,677 debentures with a total...

Bond interest payments before and after taxes   Charter Corp. has issued

1,677

debentures with a total principal value of

​$1,677,000.

The bonds have a coupon interest rate of

7​%.

a.  What dollar amount of interest per bond can an investor expect to receive each year from​ Charter?

b.  What is​ Charter's total interest expense per year associated with this bond​ issue?  

c.  Assuming that Charter is in a

25​%

corporate tax​ bracket, what is the​ company's net​ after-tax interest cost associated with this bond​ issue?   

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