Hi Tech Products has 35,000 bonds outstanding that are currently quoted at 102.3. The bonds mature in 11 years and carry a 9 percent annual coupon.
What is the firm's after-tax cost of debt if the applicable tax rate is 35%?
A) 4.47% B) 4.79% C) 5.63% D) 5.98% E) 6.31%
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