What is the after-tax cost of debt for a company that has $1000 par value...
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What is the after-tax cost of debt for a company that has $1000 par value bonds issued that pay an $80 annual coupon and have 5 years to maturity if their current price is 95% of par? The company's tax rate is 40%. (There's rounding so pick the closest) \begin{tabular}{|} \hline 5.2% \\ \hline 6.8% \\ \hline 6.4% \\ \hline 6.0% \\ \hline 5.6% \\ \hline \end{tabular}
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