Cote Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table.
Bond 1 2 3 4
Coupon Rate 7.00% 8.50% 8.20% 7.80%
Price Quote Maturity 103.46 5 years 110.78 8 years 110.13 15.5 years 103.03 25 years
Face Value $45,000,000 $40,000,000 $50,000,000 $65,000,000
If the corporate tax rate is 34%, what is the after-tax cost of the company's debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Cost of debt