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1 Term to Maturity (Years) 2 Coupon Rate 3 Price 4 Face Value 5 Frequency 6 Flotation Cost 7 Tax Rate 8 After-tax Cost of

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1 Term to Maturity (Years) 2 Coupon Rate 3 Price 4 Face Value 5 Frequency 6 Flotation Cost 7 Tax Rate 8 After-tax Cost of Debt 20 8% 970 1,000 2 1% 35% ? What is the correct formula in B8 to calculate the after-tax cost of debt? =RATE(B1%B5,B2/B5 B4-B3*(1-B6),B4)*B5*(1-B7) =RATE(B1B5,B2/B5*B4,-B3,B4)*85*(1-B7) =RATE(B1*B5,B2/B5 B4,-B3*(1-B6),B4) =RATE(B14B5,B2/B5 B4-B3*(1-B6),B4)*(1-B7)

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