Question: The June Bug has a $15,000,000 bond issue outstanding. These bonds have a 9 percent coupon, pay interest semiannually in perpetuity, and have a current

The June Bug has a $15,000,000 bond issue outstanding. These bonds have a 9 percent coupon, pay interest semiannually in perpetuity, and have a current market price equal to 98.6 percent of face value. The tax rate is 39 percent. What is the amount of the after-tax annual interest payment made by the firm? $818,500 $3,948 $873,500 $823,500 $838,500 SHOW WORK OR I WILL NOT RATE

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