eBook Bond Yield and After-Tax Cost of Debt A company's 4% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years sells at a price of $452.32. The company's federal-plus-state tax rate is 25%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal annual rate.) Round your answer to one decimal place. % Show All Feedback