Question: The June Bug has a bond issue outstanding with a $600,000,000 par value. The bond issue pays a 9 percent coupon on par (in semi-annual

The June Bug has a bond issue outstanding with a $600,000,000 par value. The bond issue pays a 9 percent coupon on par (in semi-annual installments) in perpetuity. The bond issue has a current market price equal to 100.00 percent of par value. The tax rate is 31.00 percent. What is the amount of the after-tax annual interest payment made by the firm? (Don't include the $ in your answer).

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