Nico Trading Corporation is considoring issuing longterm debt. The debt with $1000 face value would have a 30 -year matuily and a 10 percent coupon rato In order to sell the issue, the bonds must be underpricod at a discount of 5 percent of faco value In addition, the firm would have to pay llotution costs of 5 percent of face value. The firm's tax rate is 35 porcent Given this informatoon, the atter tax cost of debt for Nico Trading would be 1000% 7269 0.0016 11. 1765