Question: ABC Co . issues $ 1 , 0 0 0 par value, 6 . 5 % semiannual coupon bonds, with 1 5 years to maturity.

ABC Co. issues $1,000 par value, 6.5% semiannual coupon bonds, with 15 years to maturity. The company sells the bonds for $750. Find the after-tax cost of debt assuming a tax rate of 35%.
3.05%
4.85%
5.65%
6.31%
ABC Co. issues $1,000 par value, 6.5% semiannual coupon bonds, with

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