Question: great lakes packing has two bond issues outstanding. the first issue has a coupon rate of 8 percent, matures in 6 years, has a total
great lakes packing has two bond issues outstanding. the first issue has a coupon rate of 8 percent, matures in 6 years, has a total face value of $5 million, and is quoted at 101.2 percent of face value. the second issue has a 7.5 percent coupon, matures in 13 years, has a total face value of $18 million, and is quoted at 99 percent of face value. both bonds pay interest semiannually. what is the firms weighted average after tax cost of debt if the tax rate is 34 percent
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