Question: Mojo Mining has a bond outstanding that sells for $ 1 , 0 4 0 and matures in 1 8 years. The bond pays semiannual

Mojo Mining has a bond outstanding that sells for $1,040 and matures in 18 years. The bond pays semiannual coupons and has a coupon rate of 5.54 percent. The par value is $1,000. If the company's tax rate is 21 percent, what is the aftertax cost of debt?
Multiple Choice
5.29%
4.94%
Mojo Mining has a bond outstanding that sells for $1,040 and

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