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A firm issues a 2 0 - year semi - annual coupon payment bond, which nets it $ 1 , 1 1 3 . 5

A firm issues a 20-year semi-annual coupon payment bond, which nets it $1,113.55. The coupon rate of the bond is 9.00%. The tax rate is 21%. What is the after-tax cost of debt?
A.
8.99%
B.
7.91%
C.
6.99%
D.
6.21%
E.
5.53%
F.
4.93%
G.
4.38%
H.
3.90%

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