A firm has 3,500 bonds outstanding with a face value of $1,000 each and a coupon rate of 8.5%.The interest is paid semi-annually.What is the amount of the annual interest tax shield if the tax rate is 40%?
A)$81,600
B)$90,100
C)$101,200
D)$119,000
E)$122,000

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The Answer of A firm has 3,500 bonds outstanding with a face value of $1,000 each and a coupon rate of 8.5%.The interest is paid semi-annually.What is the amount of the annual interest tax shield if the tax rate is 40%?
A)$81,600
B)$90,100
C)$101,200
D)$119,000
E)$122,000

A Firm Has 3,500 Bonds Outstanding with a Face Value