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The outstanding bonds of Robox Corp. have ten years to maturity, 6.65% coupon rate, annual coupon, and a price of $95 per $100 face value.
The outstanding bonds of Robox Corp. have ten years to maturity, 6.65% coupon rate, annual coupon, and a price of $95 per $100 face value. What is the estimate of the pretax cost of debt if the tax rate is 30%?
Group of answer choices
5.26%
7.37%
4.62%
7.52%
5.16%
6.60%
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