on 37 + ered If the before-tax cost of debt is 7% and the firm has a 40% marginal tax rate, the after-tax cost of debt is 2,8%. Ed out of Select one True la question WA False - 6 There are no cash flow effects for the issuer of a zero coupon bond except for the initial cash Inflow when the bonds are issued and the cash payment when the bonds mature. of Select one: a. False estion b. True