A company has irredeemable bonds in issue. The coupon rate on the irredeemable bonds is 12 per cent. The current market value of the bonds is US$95 per US$100 nominal value. Corporate tax is payable at 21 per cent. If the corporate tax rate were to fall from 21 per cent to 18 per cent what would be the impact on the post-tax cost of the irredeemable bonds? Solution A.The post-tax cost of the irredeemable bonds will increase by 0.38 per cent. B.The post-tax cost of the irredeemable bonds will decrease by 0.38 per cent. C.The post-tax cost of the irredeemable bonds will increase by 0.36 per cent. D.The post-tax cost of the irredeemable bonds will decrease by 0.36 per cent