Question: The June Bug has a $17,000,000 bond issue outstanding. These bonds have a 4 percent coupon, pay interest semiannually in perpetuity, and have a current

The June Bug has a $17,000,000 bond issue outstanding. These bonds have a 4 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? $414,800 $464,800 $409,800 $3,948 $429,800 Please explain how you got the answer. Thank you

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