= Homework: Chapt... Question 3, Problem 9-4... HW Score: 55.56%, 5 of 9 points Points: 0 of 1 Save (Cost of debt) Carraway Seed Company is issuing a $1.000 pat value bond that pays 12 percent annual interest and matures in 8 years Investors are willing to pay $935 for the bond. Flotation costs will be 14 percent of market value. The company is in a 20 percent tax bracket What will be the firm's after-tax cost of debt on the bond? The tim's after-tax cost of debt on the bond will be 1% (Round to two decimal places)