After-Tax Cost of Debt LL Incorporateds currently outstanding 11% coupon bonds have a yield to maturity of

Question:

After-Tax LL Incorporated’s currently outstanding 11% bonds have a yield to of 8%. LL believes it could issue at per new bonds that would provide a similar yield to If its marginal tax rate is 35%, what is LL’s after-tax Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...