The principal, coupon interest rate, and interest overlap period are shown in the following table for a number of bonds. Bond Principal Interest Rate Overlap Period A $ 5,000,000 8.0% 3 months B...

The principal, coupon interest rate, and interest overlap period are shown in the following table for a number of bonds. Bond Principal Interest Rate Overlap Period A $ 5,000,000 8.0% 3 months B 40,000,000 7.0 2 C 50,000,000 6.5 3 D 100,000,000 9.0 6 E 20,000,000 5.5 1 a. Calculate the dollar amount of interest that must be paid for each bond during the interest overlap period. b. Calculate the after-tax cost of overlapping interest for each bond if the fi rm is in the 40 percent tax bracket.