Question: please show work aswell so i can study please ! Lexington's bonds have 15-years to maturity and a coupon rate of 8.5%. Interest is paid

please show work aswell so i can study please !

Lexington's bonds have 15-years to maturity and a coupon rate of 8.5%. Interest is paid semi- annually. The bonds sold at par value, but the firm paid flotation costs amounting to 5% of par value. The firm has a marginal tax rate of 21%. What is the firm's after-tax cost of debt for these bonds? O 6.02% O 1.92% O 7.20% O 8.5% 09.12%

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