Question: Mojo Mining has a bond outstanding that sells for $ 1 , 0 6 7 and matures in 2 3 years. The bond pays semiannual

Mojo Mining has a bond outstanding that sells for $1,067 and matures in 23 years. The bond pays semiannual coupons and has a coupon rate of 6.26 percent. The par value is $1,000. If the company's tax rate is 35 percent, what is the aftertax cost of debt?
Multiple Choice
5.45%
3.50%
5.84%
4.02%
3.73%

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