6 percent of market price. What is Brille's cost of 9.4. (Cost of debt) Carraway Seed Company is issuing a $1,000 par value bond that pays 7 percent annual interest and matures in 15 years. Investors are willing to pay $850 for the bond, Flotation costs will be 3 percent of market value. The company is in a 30 percent marginal tax bracket. What will be the firm's after-tax cost of debt on the bond? ... The nwforror stock of Texas Southern Power Company