Rockingham motors issued 30-year 8 percent semiannual bond


Rockingham Motors issued a 30-year, 8 percent semiannual bond 3 years ago. The bond currently sells for 103.1 percent of its face value. The company's tax rate is 34 percent. What is the aftertax cost of debt?

Select one: a. 2.72 percent b. 5.10 percent c. 5.69 percent d. 5.72 percent e. 5.99 percent

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Rockingham motors issued 30-year 8 percent semiannual bond
Reference No:- TGS02256086

Expected delivery within 24 Hours