Ch 10: End-of-Chapter Problems - The Cost of Capital Q Search this course Back to Assignment Attempts: Keep the Highest: /0.5 1. Problem 10.01 (After-Tax Cost of Debt) eBook The Holmes Company's currently outstanding bonds have a 9% coupon and a 13% 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 25%, what is Holmes' after-tax cost of debt? Round your answer to two decimal places. % Grade it Now Save & Continue Continue without saving HINT