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Marginal Tax Bracket Endless Education/tutorialoutletdotcom

FOR MORE CLASSES VISIT www.tutorialoutlet.com Belton Distribution Company is issuing a $1,000 par value bond that pays 10 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pa);r $958 for the bond. The company;' is in the 18 percent marginal tax bracket. What is the ?rm's after-tax cost of debt on the bond? The ?rm's after-tax cost of debt on the bond is |:|%. (Round to two decimal places.)

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