Kelner's Nursery has 8000 bonds outstanding with a face value of $1000 each.The coupon rate is 6.5 per cent and the tax rate is 34 per cent.What is the present value of the interest tax shield?
A)$3.26 million
B)$2.72 million
C)$3.09 million
D)$3.13 million
E)$2.83 million

Question

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The Answer of Kelner's Nursery has 8000 bonds outstanding with a face value of $1000 each.The coupon rate is 6.5 per cent and the tax rate is 34 per cent.What is the present value of the interest tax shield?
A)$3.26 million
B)$2.72 million
C)$3.09 million
D)$3.13 million
E)$2.83 million

Kelner's Nursery Has 8000 Bonds Outstanding with a Face Value