3.

Cost of debt using the approximation formula For the following $1,000-par-value bond, assuming annual interest payment and a 29% tax rate, calculate the after-tax cost to maturity using the approximation formula. Life Underwriting fee $30 Discount (-) or premium (+) - $30 Coupon interest rate 7% 15 years The after-tax cost of financing using the approximation formula is %. (Round to two decimal places.)