When the net proceeds from the sale of a bond equal its par value, the beforetax cost would just equal the coupon interest rate.

Name: When the net proceeds from the sale of a bond equal its par value, the beforetax cost would just equal the coupon interest rate.
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When the net proceeds from the sale of a bond equal its par value, there is no premium or discount, and the beforetax cost would just equal the coupon interest rate.

When the Net Proceeds from the Sale of a Bond