Question: Exavior Inc, has a bond outstanding with 2 0 years to maturity, a $ 1 , 0 0 0 par value, a coupon rate of

Exavior Inc, has a bond outstanding with 20 years to maturity, a $1,000 par value, a coupon rate of 8%, with coupons paid semiannually, and a price of $925. The company's tax rate is 40%. What is the company's after-tax cost of debt?
a.0.0264
b.0.0528
c.0.1041
d.0.1557
Exavior Inc, has a bond outstanding with 2 0

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