calculate the after tax cost of debt for these options (Use the approximation method). Subsidy Tax Rate is 15% on these $1,000 face value bonds. My investment banker has also told me their flotation cost is $30 per bond.

My options are:

Coupon rate Time to maturity Selling at a Premium(+ = above face value) / Discount(- = below face value)

Bond A 9% 16 years +$250

Bond B 6% 7 years face value

Bond C 5% 10 years - $75

1.Calculate the after tax cost of long term debt for each of these three options