Question: Sandhill has determined that it could issue $ 1 , 0 0 0 face value bonds with an 9 percent coupon paid semiannually and a
Sandhill has determined that it could issue $ face value bonds with an percent coupon paid semiannually and a fiveyear maturity at $ per bond. If Sandhill's marginal tax rate is percent, its aftertax cost of debt is closest to:
percent.
percent.
percent.
percent.
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