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LG3 P9-5 AFTER-TAX COST OF DEBT For each of the following $1,000-par-value bonds, assuming annual interest payment and a 21% tax rate, calculate the after-tax

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LG3 P9-5 AFTER-TAX COST OF DEBT For each of the following $1,000-par-value bonds, assuming annual interest payment and a 21% tax rate, calculate the after-tax cost of debt. Underwriting Life Bond (years) Discount (-) or premium (+) Coupon interest rate fee D> A 20 $25 -$20 996 B 16 40 +10 10 15 30 -15 12 D 25 15 par 9 E 22 20 -60 11

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