Question: Quantitative Problem: 5 years ago, Barton Industries issued 25 -year noncallable, semiannual bonds with a $1,300 face value and a 5% coupon, semiannual payment (

Quantitative Problem: 5 years ago, Barton Industries issued 25 -year noncallable, semiannual bonds with a $1,300 face value and a 5% coupon, semiannual payment ( $32.5 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? Round your answer to 2 decimal places. Do not round intermediate calculations. %

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