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Price of Bond= $930 Flotation Expense = 5.0% Tax rate = 25.0% Par Value = $1,000 Maturity = 15 years Coupon rate = 7.0% per

Price of Bond= $930 Flotation Expense = 5.0% Tax rate = 25.0%

Par Value = $1,000 Maturity = 15 years

Coupon rate = 7.0% per annum, paid semiannually

What is the after-tax cost of debt?

Have your calculator display 4 decimal points

Make sure that you convert your answer to an annualized rate

Answer format: Enter 4.5% as 4.5

"r_D" = (1 - T) x YTM

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