Golden State Co. issued 10-year, 6 percent semiannual coupon bonds. The bonds currently sell at 120 percent of face valu

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answerhappygod
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Golden State Co. issued 10-year, 6 percent semiannual coupon bonds. The bonds currently sell at 120 percent of face valu

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Golden State Co. issued 10-year, 6 percent semiannual couponbonds. The bonds currently sell at 120 percent of face value (facevalue is $1,000). What is the firm's after-tax cost of debt if thetax rate is 21 percent?
a) 3.60 %
b) 2.84%
c) 4.62%
d) 1.80%
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