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What is the aftertax cost of debt

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Reference no: EM131318156

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?

  • 2.72 percent
  • 5.10 percent
  • 5.69 percent
  • 5.72 percent
  • 5.99 percent

Reference no: EM131318156

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