Logan Inc. has 12-year, 8 percent semiannual coupon bonds outstanding that were issued by its British subsidiary. The bonds are guaranteed by Logan. The bonds have a £1,000 face value and sell for £1,042.82. Logan's tax rate is 40 percent. If the pound is expected to appreciate by 0.02156, what is Logan's after-tax cost of foreign-denominated debt to U.S. investors?

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The Answer of Logan Inc. has 12-year, 8 percent semiannual coupon bonds outstanding that were issued by its British subsidiary. The bonds are guaranteed by Logan. The bonds have a £1,000 face value and sell for £1,042.82. Logan's tax rate is 40 percent. If the pound is expected to appreciate by 0.02156, what is Logan's after-tax cost of foreign-denominated debt to U.S. investors?

Logan Inc Has 12-Year, 8 Percent Semiannual Coupon Bonds Outstanding That