Charter Corp. has issued 2,502 debentures with a total principal value of $2,502,000. The bonds have a coupon interest rate of 77%.

a.What dollar amount of interest per bond can an investor expect to receive each year from Charter?

b.What is Charter's total interest expense per year associated with this bond issue?

c.Assuming that Charter is in a 15% corporate tax bracket, what is the company's net after-tax interest cost associated with this bond issue?