A companys 8 coupon rate semiannual payment 1000 par value


A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $717.47. The company's federal plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (hint: base your answer on the nominal rate). Round your answer to two decimal places.

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Financial Management: A companys 8 coupon rate semiannual payment 1000 par value
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