Cost of Capital 1. Suppose a firm borrows $1 million at 9% interest. The corporate tax rate is 21%. What is the after- tax interest rate on this loan? A) 7.11 B) 4.56 C) 9.5 D) 15.6 E) 25.4 2. The average coupon rate on DuPont's outstanding debt is 4% and the average yield to maturity is 1.94%. DuPont's tax rate is 40%. What is DuPont's after-tax cost of debt? A) 3.15% B) 4.5% C) 0.2% D) 1.2% E) 6.7%