Determine the companys pre-tax cost of debt if the company

Reference no: EM13477539

Wind Power Systems has 20-year, semi-annual bonds outstanding with a 5 percent coupon. The face amount of each bond is $1,000. These bonds are currently selling for 114 percent of face value. What is the company's pre-tax cost of debt? If the company has a 38% marginal tax rate, what is its after tax cost of debt?

Reference no: EM13477539

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