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Sunland Industries has 8 percent coupon bonds outstanding. These bonds have a market price of $981.44, pay interest semiannually, and will mature in 6 years.
Sunland Industries has 8 percent coupon bonds outstanding. These bonds have a market price of $981.44, pay interest semiannually, and will mature in 6 years. If the tax rate is 35 percent, what are the pre-tax cost and after-tax cost of this debt? (Round answers to 2 decimal places, e.g. 52.75%.) Pre-tax cost % After-tax cost %
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