5 years ago, Barton Industries issued 25-year non-callable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt?

Round your answer to 2 decimal places.

Do not round intermediate calculations.

Answer rating: 100% (QA)

1 Face value FV 1600 2 Coupon rate 800 3 Number of compounding periods per ... View the full answer