Question: A bond with a $1,000 par value bond has 8 years to maturity and a 7.50% annual coupon that is paid semiannually. The bond currently

A bond with a $1,000 par value bond has 8 years

A bond with a $1,000 par value bond has 8 years to maturity and a 7.50% annual coupon that is paid semiannually. The bond currently sells for $780 and the company's tax rate is 25%. What is the after-tax cost of debt? 5.91% 11.83% 4.44% 7.42% 8.87%

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