A corporate bond has a face value of $1,000 and a coupon rate of 9%.The bond matures in 14 years and has a current market price of $946.If the corporation sells more bonds,it will incur flotation costs of $26 per bond.If the corporate tax rate is 35%,what is the after-tax cost of debt capital?

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The Answer of A corporate bond has a face value of $1,000 and a coupon rate of 9%.The bond matures in 14 years and has a current market price of $946.If the corporation sells more bonds,it will incur flotation costs of $26 per bond.If the corporate tax rate is 35%,what is the after-tax cost of debt capital?

A Corporate Bond Has a Face Value of $1,000 and a Coupon