Question: The June Bug has a bond issue outstanding with a $650,000,000 par value. The bond issue pays a 5 percent coupon on par (in semi-annual

The June Bug has a bond issue outstanding with a $650,000,000 par value. The bond issue pays a 5 percent coupon on par (in semi-annual installments) in perpetuity. The bond issue has a current market price equal to 97.50 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 $ sign in your answer.

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