Question: Sunland has determined that it could issue $1000 face value bonds with an 10 percent coupon paid semiannually and a 5-year maturity at $939.63 per

Sunland has determined that it could issue $1000 face value bonds with an 10 percent coupon paid semiannually and a 5-year maturity at $939.63 per bond. If Sunlands marginal tax rate is 40 percent, its after-tax cost of debt is closest to: A_6.6 percent.,B_7.0 percent., C_7.3 percent., D_6.7 percent.

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