Question: The June Bug has a $16,000,000 bond issue outstanding. These bonds have a 7 percent coupon, pay interest semiannually in perpetuity, and have a current

The June Bug has a $16,000,000 bond issue outstanding. These bonds have a 7 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?

$678,200

$698,200

$683,200

$3,948

$733,200

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