What is the after-tax cost of debt

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Given the data below, what is the after-tax cost of debt for Topstone Industries if its debt consists of 10-year bonds rated AA and the tax rate is 50%? The Treasury yield is 5.3%. The spreads are given in basis points

Corporate spreads

Rating 

3 yr

5 yr

10 yr

AAA

15

22

30

AA+

20

32

40

AA

30

37

50

AA-

35

45

55

A+

45

58

65

A

58

65

75

A-

79

85

88

Reference no: EM133118548

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