Back to Assignment Attempts: Average: /1 1. Problem 10.01 Click here to read the eBook: Cost of Debt, ra(1-1) AFTER-TAX COST OF DEBT The Holmes Company's currently outstanding bonds have a 9% coupon and a 12% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is Holmes's after-tax cost of debt? Round your answer to two decimal places. % Grade it Now Save & Continue Continue without saving