Marginal tax rate-what is after-tax cost of debt

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Neotech Corporation’s 12 percent coupon rate, semiannual payment, $1,000 par value, 30-year bonds currently sell at a price of $1,353.54. If its marginal tax rate is 40 percent, what is Neotech’s after-tax cost of debt?

Reference no: EM131354082

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Marginal tax rate-what is after-tax cost of debt : Neotech Corporation’s 12 percent coupon rate, semiannual payment, $1,000 par value, 30-year bonds currently sell at a price of $1,353.54. If its marginal tax rate is 40 percent, what is Neotech’s after-tax cost of debt?

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