Jemison Foods has 6,500 bonds outstanding with a face value of $1,000 each and a coupon rate of 8%. The interest is paid semi-annually. What is the amount of the annual interest tax shield if the tax rate is 35%?
A) $81,250
B) $129,750
C) $182,000
D) $284,400
E) $338,000

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The Answer of Jemison Foods has 6,500 bonds outstanding with a face value of $1,000 each and a coupon rate of 8%. The interest is paid semi-annually. What is the amount of the annual interest tax shield if the tax rate is 35%?
A) $81,250
B) $129,750
C) $182,000
D) $284,400
E) $338,000

Jemison Foods Has 6,500 Bonds Outstanding with a Face Value