Question: Cullumber has determined that it could issue $1050 face value bonds with an 8 percent coupon paid semiannually and a 5-year maturity at $917.62 per

Cullumber has determined that it could issue $1050 face value bonds with an 8 percent coupon paid semiannually and a 5-year maturity at $917.62 per bond. If Cullumber's marginal tax rate is 39 percent, its after-tax cost of debt is closest to: 6.6 percent. 6.9 percent 7.2 percent 6.5 percent

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