29.

Proton Corp. has bonds outstanding that have a coupon rate of 8% and a yield to maturity (YTM) of 6.5%. Proton has a marginal tax rate of 40 percent. What is the after-tax cost of debt for Proton?

Select one:

a. 3.9%

b. 4.8%

c. 6.5%

d. 8.0%