Russell Container Corporation has a $1,000 par value bond outstanding with 25 years to maturity. The bond carries an annual interest payment of $122 and is currently selling for $800 per bond. Russell Corp. is in a 35 percent tax bracket. The firm wishes to know what the aftertax cost of a new bond issue is likely to be. The yield to maturity on the new issue will be the same as the yield to maturity on the old issue because the risk and maturity date will be similar.