Question: Please help me solve this problem! tion 12 Mason-Dixon Stores has two bond issues outstanding. The first issue has a coupon et ered rate of

Please help me solve this problem!

Please help me solve this problem! tion 12
tion 12 Mason-Dixon Stores has two bond issues outstanding. The first issue has a coupon et ered rate of 9 percent, matures in 4 years, has a total face value of $10 million, and is is out of quoted at 109 percent of face value. The second issue has a 7 percent coupon, matures in 11 years, has a total face value of $22 million, and is quoted at 101 percent of face lag stion value. Both bonds pay interest semiannually. What is the weighted average aftertax cost of debt if the tax rate is 35 percent? Select one: a. 4.37 percent b. 5.44 percent O c. 6.72 percent O d. 5.01 percent O e. 4.71 percent

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