QUESTION 13 A firm has outstanding debt (bonds) with a coupon rate of 8%, five years until maturity, and a price of $1,000 per $1,000 face value. The coupons are paid annually. What is the after-tax cost of debt if the marginal tax rate of the firm is 25%? Hint: First, find the yield to maturity on the debt (bonds), which is the before-tax cost of debt. 6.75% 5.75% 5.40% 6.00%