Question: Crane has determined that it could issue $1150 face value bonds with an 9 percent coupon paid semiannually and a 5-year maturity at $1060.84 per

Crane has determined that it could issue $1150 face value bonds with an 9 percent coupon paid semiannually and a 5-year maturity at $1060.84 per bond. If Cranes marginal tax rate is 36 percent, its after-tax cost of debt is closest to:

7.4 percent.

6.7 percent.

6.8 percent.

7.1 percent.

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