A company is issuing a 1000 par value bond that pays 70, Financial Management

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A company is issuing a 1000 par value bond that pays 70

A company is issuing a $1,000 par value bond that pays 7.0% annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay $958 for the bond. The company is in the 18% marginal tax bracket. What is the firm's after tax cost of debt on the bond, rounded to 2 decimal places.

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Financial Management: A company is issuing a 1000 par value bond that pays 70

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