GibsonIndustries is issuing a $1,000 par value bond with an 8% annual interest couponrate that matures in 11 years. Investors are willing to pay $972, and flotationcosts will be 9%. Gibson is in the 34% tax bracket. What will be the after-taxcost of new debt for the bond?

GibsonIndustries is issuing a $1,000 par value bond with an 8% annual interest couponrate that matures in 11 years. Investors are willing to pay $972, and flotationcosts will be 9%. Gibson is in the 34% tax bracket. What will be the after-taxcost of new debt for the bond?

GibsonIndustries is issuing a $1,000 par value bond with an 8% annual interest couponrate that matures in 11 years. Investors are willing to pay $972, and flotationcosts will be 9%. Gibson is in the 34% tax bracket. What will be the after-taxcost of new debt for the bond?