Question: Current bond issue: 15 years to maturity; Coupon rate = 12%; Coupons paid semiannually; Currently bond price = $1,253.72; Corporate tax rate = 40%.

Current bond issue: 15 years to maturity; Coupon rate = 12%; Coupons paid semiannually; Currently bond price

Current bond issue: 15 years to maturity; Coupon rate = 12%; Coupons paid semiannually; Currently bond price = $1,253.72; Corporate tax rate = 40%. What is the after tax cost of debt? 5.34% 4.58% 6.15% 7.25%

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