Question: Mojo Mining has a bond outstanding that sells for $ 2 , 1 3 8 and matures in 1 6 years. The bond pays semiannual

Mojo Mining has a bond outstanding that sells for $2,138 and matures in 16 years. The bond pays semiannual coupons and has a coupon rate of 6.82 percent. The par value is $2,000. If the company's tax rate is 21 percent, what is the aftertax cost of debt?
Multiple Choice
3.55%
4.08%
4.85%
5.89%
6.31%
 Mojo Mining has a bond outstanding that sells for $2,138 and

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