For each of the callable bond issues in the following table, calculate the after-tax cost of calling the issue. Each bond has a $1,000 par value, and the various issue sizes and call prices are shown...

For each of the callable bond issues in the following table, calculate the after-tax cost of calling the issue. Each bond has a $1,000 par value, and the various issue sizes and call prices are shown in the following table. The fi rm is in the 40 percent tax bracket. Bond Size of Issue Call Price A 12,000 bonds $1,050 B 20,000 1,030 C 30,000 1,015 D 50,000 1,050 E 100,000 1,045 F 500,000 1,060 P13-3. The fl oatation cost, the initial maturity, and the number of years remaining to maturity are shown in the following table for a number of bonds. The fi rm is in the 40 percent tax bracket. Floatation Initial Maturity Years Remaining Bond Cost of Bond to Maturity A $250,000 30 years 22 years B 500,000 15 5 C 125,000 20 10 D 750,000 10 1 E 650,000 15 6 a. Calculate the annual amortization of the fl otation cost for each bond. b. Determine the tax savings, if any, expected to result from the unamortized fl oatation cost if the bond were called today.