Corporation sold P50 million of P1,000 par value, 12% coupon bonds. The bonds were sold at a discount and the corporation received P985 per bond. If the corporate tax rate is 40%, the after-tax cost...

 Corporation sold P50 million of P1,000 par value, 12% coupon bonds. The bonds were sold at a discount and the corporation received P985 per bond. If the corporate tax rate is 40%, the after-tax cost of these bonds for the first year (rounded to the nearest hundredth percent) is *