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Business, 12.08.2020 05:01 zitlays

Mojo Mining has a bond outstanding that sells for $2,120 and matures in 18 years. The bond pays semiannual coupons and has a coupon rate of 6.66 percent. The par value is $2,000. If the company's tax rate is 40 percent, what is the aftertax cost of debt? A. 3.96%
B. 6.24%
C. 5.82%
D. 3.66%
E. 3.45%

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