18) The approximate after-tax cost of debt for a 20-year, 7 percent, $1,000 par value bond selling at $960 (assume a marginal tax rate of 40 percent) is A) 4.43 percent B) 5.15 percent C) 7 percent D) 7.35 percent Answer: A Diff: 1 Topic: After-Tax Cost of Debt Learning Obj.: LG 3 Learning Outcome: F-14 Question Status: Revised AACSB Tag: Analvtic Skills