In: Finance
Mojo Mining has a bond outstanding that sells for $2,201 and matures in 21 years. The bond pays semiannual coupons and has a coupon rate of 7.38 percent. The par value is $2,000. If the company's tax rate is 40 percent, what is the aftertax cost of debt?
Choices:
3.90%
6.66%
6.22%
3.69%
4.23%