Martin Food Supplies Corp. issued a 12-year bond at $1,000 pricr eith a 9% coupon ratr abd insurance cost of $25 for each bond. What is the after tax cost of the debt for thus bond if Martin Food Supplies, Corp. marginal tac rate is 40%

Martin Food Supplies Corp. issued a 12-year bond at a $1,000 price with a 9% coupon rate and issuance cost of $25 for each bond. What is the after- tax cost of debt for this bond if Martin Food Supplies, Corp's marginal tax rate is 40%? 9.28% 5.57% 9.36% 5.61%