Principles of financial management hw6 question 4

= Homework: HW 6 (Ch. 9 & 10) Question 4, Problem 9-6... HW Score: 37.5%, 3.75 of 10 points O Points: 0 of 1 Save (Cost of debt) The Zephyr Corporation is contemplating a new investment to be financed 33 percent from debt. The firm could sell new $1,000 par value bonds at a net price of $910. The coupon interest rate is 13 percent, and the bonds would mature in 14 years. If the company is in a 30 percent tax bracket, what is the after-tax cost of capital to Zephyr for bonds? The after-tax cost of capital to Zephyr for bonds is %. (Round to two decimal places.)