You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity, 7.50 percent semiannual coupon bonds are selling at a price of $1, XXXXXXXXXXThese bonds are the...

You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity, 7.50 percent semiannual coupon bonds are selling at a price of $1,000.00. These bonds are the only debt outstanding for the firm.

- What is the after-tax cost of debt for this firm if it has a marginal tax rate of 34 percent?