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Cost of debt using the approximation formula For the following $1,000-par-value bond, assuming annual interest payment and a 30% tax rate, calculate the after-tax cost

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Cost of debt using the approximation formula For the following $1,000-par-value bond, assuming annual interest payment and a 30% tax rate, calculate the after-tax cost to maturity using the approximation formula. Life 10 years Underwriting fee $20 Discount (-) or premium (+) $20 Coupon interest rate 7% What is the after-tax cost of financing using the approximation formula? % (Round to two decimal places.)

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