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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%?

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5.26%

7.37%

4.62%

7.52%

5.16%

6.60%

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