My company is contemplating expanding by selling bonds. My investment banker advises me that the S1,000 par value bonds should sell at a premium of $1,100 less 3% for flotation fees. The bonds have a coupon rate of 10% and will mature in 10 years. What is my company's after tax cost of debt assuming we are subjected to a 15% Interest Subsidy Tax Rate (ISTR)? par value - Nd R(d = Nd + par value 2 R() = R(d) x (1-ISTR)