a.A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.5 percent. Interest payments are $57.50 and are paid semiannually. The bonds have a current market value of $1241,and will mature in 10 years. The firm's marginal tax rate is 34 percent.

b.A new common stock issue that paid a$1.75 dividend last year. The firm's dividends are expected to continue to grow at 6.8 percent per year, forever. The price of the firm's common stock is now $27.49.

c.A preferred stock that sells for $145, pays a dividend of 9.7 percent, and has a $100 par value.

d.A bond selling to yield 12.41 percent where the firm's tax rate is 34percent.

a.The after-tax cost of debt is ________________