Use the IRR (TIR) formula with in-flow and outflows OR the RATE (TASA) formula in Excel.

Make sure you show all the variables included in the Excel file.

If a corporation pays a tax rate of 21%, the after-tax cost of debt for a 10-year, 8% coupon rate, $1,000 par value bond selling at $1,150 is:

a)4.71%

b)1.25%

c)6.32%

d)3.58%