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Posted on Jul 23, 2024

A company has $ 1 5 , 0 0 0 bonds outstanding with a face value of $ 1 , 0 0 0 per bond.

A company has $

15, 000

bonds outstanding with a face value of $

1, 000

per bond. The bonds carry a

6 %

coupon, pay interest annually, and mature in

17

years. The bonds are selling at

98 %

of par. The company's tax rate is

18 % .

What should be the company's after tax cost debt?

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