A firm has outstanding debt (bonds) with a coupon rate of 9%, five years until maturity, and a price of \$1,000 per \$1,000 face value

A firm has outstanding deh (bond with a coupon rate of 9%, five years with maturity, and price of $1.000 per $1,000 toevalue. The open we paid mully. What the after-tax cont of deht it the marginal tax rate of the firm in 257 Hant. First, find the yould to mtunity on the debt (bvod), which is the before tix cont of dicht 06754 60% 5.7% 3404