Question: Dot.Com has determined that it could issue $1,000 face value bonds with an 8 percent coupon paid semiannually and a five-year maturity at $900 per

Dot.Com has determined that it could issue $1,000 bonds with an 8 percent paid semiannually and a five-year at $900 per bond. If Dot. Com’s marginal tax rate is 38 percent, its after-tax is closest to:
a. 6.2 percent.
b. 6.4 percent.
c. 6.6 percent.
d. 6.8 percent.

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