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00340. ABC Inc. has 10-year, 15% annual coupon bonds that have a face value of $1,000 and sell for $1,252. The companys tax rate is

00340. ABC Inc. has 10-year, 15% annual coupon bonds that have a face value of $1,000 and sell for $1,252. The companys tax rate is 40%. What is the companys after-tax cost of debt?

	A.	7.20%
	B.	8.33%
	C.	6.46%
	D.	4.80%
	E.	3.95%

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