Five years ago, ABC Firms issued $1,000 par value bonds with a 12% coupon rate and an original maturity of 20 years. These bonds are now selling for $1,150. If the firm faces a 40% tax rate, what is...

Five years ago, ABC Firms issued $1,000 par value bonds with a 12% coupon rate and an original maturity of 20 years. These bonds are now selling for $1,150. If the firm faces a 40% tax rate, what is the after-tax cost of debt? Coupon payments are made semiannually.