Question: ( 1 1 - 9 ) Bond Yield and After - Tax Cost of Debt A company's 6 % coupon rate, semiannual payment, $ 1

(11-9) Bond Yield and After-Tax Cost of Debt
A company's 6% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $515.16. The company's federal-plus-state tax rate is 25%. What is the firm's after-tax component
cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal annual rate.)
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(11-9) Bond Yield and After-Tax Cost of Debt A company's 6%

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