(Answered) Belton distribution company is issuing a 1000 par value

Finance

Belton Distribution Company is issuing a ?$1,000 par value bond that pays 7.0 percent 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 percent marginal tax bracket. What is the? firm's after-tax cost of debt on the? bond?

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