The interest rate of debt (bonds, loans) after deducting the income tax savings. For example, if
a corporation has issued bonds with an interest rate of 8% and the corporation’s income tax rate
is 25%, the after-tax cost of the bonds’ interest is 6% (8% minus the tax savings equal to 25% of
8%).
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,651 reviews
For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.
