V-Labs is seeking to estimate its WACC. As part of the process, youve been tasked to estimate the cost of V-Labs long term bonds.

V-Labss bonds, which have a face value of $1000, currently sell for a market price of $919 per bond. The bonds are due to mature in 9 years. Youve determined that the effective annual yield to maturity (YTM), on the bonds is 6.06%.

Youve also estimated the beta of V-Labs bonds to be 0.45. The current risk free rate is 3.2% per year and the expected return on the broad stock market is 8.4%.

V-Labs corporate tax rate is 20%.

Determine the most precise estimate of the cost of long-term debt, on a before tax basis.Enter your answer as a PERCENT, not as a decimal, with at least 4 digits of precision. 5B) Johnson Marine is seeking to estimate its WACC. As part of the process, youve been tasked to estimate the after-tax cost of their long term bonds.

The bonds, which have a face value of $1000, currently sell for a market price of $772 per bond. The bonds are due to mature in 7 years. Youve determined that the effective annual yield to maturity (YTM), on the bonds is 7.98%.

Youve also estimated the beta of the bonds to be 0.36. The current risk free rate is 2.5% per year and the expected return on the broad stock market is 9%.

Johnson Marines corporate tax rate is 24%.

Determine the most precise estimate of the cost of long-term debt, on a after tax basis.

Enter your answer as a PERCENT, not as a decimal, with at least 4 digits of precision