Beckham Corporation has semiannual bonds outstanding with 10 years to maturity and the bonds are currently priced at $856.16 If the bonds have a coupon rate of 7.5 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 40 percent? Access Excel sheet here 9.79% of the Above 5.87 3.92 2.94%

Beckham Corporation has semiannual bonds outstanding with 10 years to maturity and the bonds are currently priced at $856.16. If the bonds have a coupon rate of 7.5 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 40 percent? Access Excel sheet here 9.79% None of the Above 5.87% 3.92% 294%