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Marine Lines Corp's tax rate is 40 percent. What is its weighted average aftertax cost of debt if it has two debt issues that pay

Marine Lines Corp's tax rate is 40 percent. What is its weighted average aftertax cost of debt if it has two debt issues that pay interest semiannually? The first issue has a coupon of 3.68 percent, a par value of $2,000 per bond, matures in 5 years, has a total face value of $4.5 million, and is priced at 102 percent of face value. The second issue pays a coupon of 6.45 percent, has a par value of $1,000 per bond, matures in 20 years, has a total face value of $8.8 million, and is quoted at 94 percent of face value.

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