You are analyzing the cost of debt for a firm. You know that the firm's $14-$year maturity, $6\mathrm{.}6$ percent coupon bonds are selling at a price

of $$844\mathrm{.}00.$ The bonds pay interest semiannually. If these bonds are the only debt outstanding, answer the following questions.

Problem $13\mathrm{.}17a1-a2(a1)$

Your answer is correct.

What is the current YTM of the bonds? $($Round intermediate calculations to $4$ decimal places, e$.$g$.1\mathrm{.}2514$ and final answer

to $0$ decimal places, e$.$g$.15\%.$

Current YTM for the bonds

$\%$

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Attempts: $1$ of $3$ used

Problem $13\mathrm{.}17$ a$1-$a$2($a$2)$

Your answer is incorrect.

What is the after$-$tax cost of debt for this firm if it is subject to $30$ percent marginal and average tax rates? $($Round final answer to

$2$ decimal places, e$.$g$.15\mathrm{.}25\%.$

After$-$tax cost of debt

$\%$