Coleman's tax rate is 35 percent. The current price of Colemans 12 percent coupon price, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1.153.72. Coleman does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. What is the market interest rate on Colemans' debt and its component cost of debt? .056 .04 400 .065