Batter's Home has 3,000 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 30%?
A)$52,000
B)$60,000
C)$62,500
D)$68,000
E)$72,000

Question

Quizplus · Accepted Answer

The Answer of Batter's Home has 3,000 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 30%?
A)$52,000
B)$60,000
C)$62,500
D)$68,000
E)$72,000

Batter's Home Has 3,000 Bonds Outstanding with a Face Value