Question: which is correct? The coupon rate on a debt issue is 6%. If the yleld to maturity on the debt is 11%, what is the

which is correct?

The coupon rate on a debt issue is 6%. If the yleld to maturity on the debt is 11%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 40% ? Note: Round your answer to 2 decimal places. 5.25% 7.95% 6.60% 8.75%

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