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11 MyCron Inc. is planning to issue new bonds. The bonds will carry an 7 coupon rate (paid annually) and will have 10 years until

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11 MyCron Inc. is planning to issue new bonds. The bonds will carry an 7 coupon rate (paid annually) and will have 10 years until maturity. Investors buying the bonds will pay 51,010. The Investment bank helping float the issue will keep 560 per bond. MyCron is in the 40% tax bracket. Which of the following is closest to MyCron's after-tax cost of borrowing? 9 2.92% 437 7.28 7.774

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