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Use the following data to calculate the Cost of Debt for the bond issues of Martin Corporation (one perecentage that represents the after tax cost

Use the following data to calculate the Cost of Debt for the bond issues of Martin
Corporation (one perecentage that represents the after tax cost for all the debt).
Bond #1 Bond #2
Face Value $ 200,000,000 $ 180,000,000
Current Price 106.50 99.20
Coupon Rate 6.20% 5.30%
Coupon payments per year 2 2
Years remaining until maturity 12 15
Tax Rate = 20%

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