1. reuven corp. is undergoing a major expansion. the expansion will be financed by issuing a

new 18-year, $1000 par, 7% semiannual coupon bonds. the market price of the bonds is $940

each. reuven's flotation expense on the new bonds will be $80 per bond. the corporation is in

the 35 tax bracket. what is the post tax cost of debt for the newly issued bonds.

please explain by hand not with excel