GHJ Inc.$\text{'}$s semi$-$annual bonds have a price of $$1,070,$ an $7\mathrm{.}10\%$ coupon rate and mature in $20$ years. The company's tax rate is $44\%.$ What is its after$-$tax cost of debt when calculating its WACC?

Question $9$Answer

a$\mathrm{.}7\mathrm{.}10\%$

b$\mathrm{.}6\mathrm{.}47\%$

c$\mathrm{.}1\mathrm{.}81\%$

d$\mathrm{.}3\mathrm{.}98\%$

e$\mathrm{.}3\mathrm{.}62\%$