Galvatron Metals has a bond outstanding with a coupon rate of 6.7 percent and semiannual payments....

Galvatron Metals has a bond outstanding with a coupon rate of 6.7 percent and semiannual payments. The bond currently sells for $1,891 and matures in 17 years. The par value is $2,000 and the company's tax rate is 35 percent. What is the company's aftertax cost of debt?

3.39% 3.63% 4.72% 5.00% 4.36%

Expert Solution

jeff jeffy answered 1 year ago

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