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ER ebook Bond Yield and After-Tax Cost of Debt A company's coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells

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ER ebook Bond Yield and After-Tax Cost of Debt A company's coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $718.69. The company's federal-plus-state tax rate is 40%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places

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