Question: Nutri - West has a $ 5 million ( face value ) 1 0 - year bond issue with an 8 percent coupon rate selling

Nutri-West has a $5 million (face value)10-year bond issue with an 8 percent coupon rate selling for 105
percent of par ($1000). Interest is paid semiannually. If the tax rate is 21 percent, what is the annual after-tax cost
of debt for the firm?

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