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After-tax component cost of debt

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Using a financial calculator: Stern Manufacturing issued a 10-year, 12% SEMI-ANNUAL bond 5-years back. The debt issue is currently priced at $925.00. The firm's marginal tax rate is 39%. What is Stern's after-tax component cost of debt?

Reference no: EM131101054

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After-tax component cost of debt : Using a financial calculator: Stern Manufacturing issued a 10-year, 12% SEMI-ANNUAL bond 5-years back. The debt issue is currently priced at $925.00. The firm's marginal tax rate is 39%. What is Stern's after-tax component cost of debt?
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