Newborn Nursery has 12,000 bonds outstanding with a face value of $1,000 each.The coupon rate is 6.9 percent and the tax rate is 34 percent.What is the present value of the interest tax shield?
A)$4.14 million
B)$4.86 million
C)$3.87 million
D)$3.92 million
E)$4.08 million

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The Answer of Newborn Nursery has 12,000 bonds outstanding with a face value of $1,000 each.The coupon rate is 6.9 percent and the tax rate is 34 percent.What is the present value of the interest tax shield?
A)$4.14 million
B)$4.86 million
C)$3.87 million
D)$3.92 million
E)$4.08 million

Newborn Nursery Has 12,000 Bonds Outstanding with a Face Value