because, more often than not, the capital is being raised to fund long -term projects. Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 10% coupon, semiannual payment ($50 payment every 6 months). The bonds currently sell for $818.87. If the firm's marginal tax rate is 25%, what is the firm's after tax cost of debt? Do not round Intermediate calculations. Round your answer to two decimal places