Given the data below, what is the after-tax cost of debt for Top stone Industries if its debt consists of 10-year bonds rated AA and the tax rate is 50%? The Treasury yield is 5.3%. 

Corporate spreads
Rating	3 yr	5 yr	10 yr
AAA	15	22	30
AA+	20	32	40
AA	30	37	50
AA-	35	45	55
A+	45	58	65
A	58	65	75
A-	79	85	88

Answer rating: 100% (QA)

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