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Dot.Com has determined that it could issue $1100 face value bonds with an 10 percent...

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Accounting

Dot.Com has determined that it could issue $1100 face value bonds with an 10 percent coupon paid semiannually and a 5-year maturity at $1039.89 per bond. If Dot.Coms marginal tax rate is 39 percent, its after-tax cost of debt is closest to: a. 7.3 percent. b. 6.6 percent. c. 6.7 percent. d. 7.0 percent?

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