What is aftertax cost of debt

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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?

Select one: a. 2.72 percent b. 5.10 percent c. 5.69 percent d. 5.72 percent e. 5.99 percent

Reference no: EM131460517

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