13 . 19 Cost of debt for a firm : You are analyzing the after -tax cost of debt for a firm . You know that the firm's 12 - year maturity , 9 .5 percent semi- annual coupon bonds are selling at a price of $1 200 If these bonds are the only debt outstanding for the firm , what is the after-tax cost o debt for this firm if has a marginal tax rate for the firm is 34 percent ? What if the bonds are selling at par ? Maturity 12 Coupon rate 9.50% Current bond price $1 200 Tax rate 34 Par value $1 000 Coupon frequent After-tax cost of debt ( at current price ) After - tax cost of debt ( if selling at par )