You know that the after$-$tax cost of debt capital for Wildhorse Company is $18\mathrm{.}9$ percent. If the firm has only one issue of five$-$year

bonds outstanding. Assume the bonds make semiannual coupon payments and the marginal tax rate is $30$ percent. Assume the par

value of the bonds is $$1,000.$

Excel Template

$($Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have

different values. When using this template, copy the problem statement from this screen for easy reference to the values you've

been given here, and be sure to update any values that may have been pre$-$entered in the template based on the textbook version

of the problem.$)$

Problem $13\mathrm{.}15$ a$1-$a$2($Excel Video$)($a$1)$

Your answer is correct.

Calculate the pre$-$tax cost of debt capital.

Pre$-$tax cost of debt capital

eTextbook and Media

Using multiple attempts will impact your score.

$50\%$ score reduction after attempt $2$

Problem $13\mathrm{.}15$ a$1-$a$2($Excel Video$)($a$2)$

What is the current price of the bonds if the coupon rate on those bonds is $27$ percent?

Current price of the bonds