USA Manufacturing issued $30-$year, $7\mathrm{.}2$ percent semiannual bonds $6$ years ago. The bonds currently sell at $101$ percent of face value. What is the firm's aftertax cost of debt if the tax rate is $21$ percent?

Question $25$Answer

a$.$

$4\mathrm{.}82\%$

b$.$

$5\mathrm{.}62\%$

c$.$

$3\mathrm{.}76\%$

d$.$

$3\mathrm{.}59\%$

e$.$

$4\mathrm{.}40\%$