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ABC's outstanding bonds have an 9% annual coupon payment and will mature in 15 years. The bonds are currently selling for 97.15% of par. If

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ABC's outstanding bonds have an 9% annual coupon payment and will mature in 15 years. The bonds are currently selling for 97.15% of par. If the company can issue new bonds at par with similar YTM, what is ABC's before-tax cost of debt? If ABC's marginal tax rate is 25%, what is its after-tax cost of debt? 9.36% : 7.02% 8.06%: 6.05% O 7.00%: 5.25% 10.31% : 7.73% O 8.47%: 6.35%

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