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Seneca Inc. sells 100 million worth of 23-yeaar to maturity 6.69% annual coupon bonds. The new proceeds after floatation costs are 980 for each 1000 bond. The firms marginal tax rate is 40%. What is the after tax cost of capital for this debt financing?

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Seneca Inc. sells 100 million worth of 23-yeaar to maturity 6.69%

annual coupon bonds. The new proceeds after floatation costs are 980 for each 1000 bond. The firms marginal tax rate is 40%. What is the after tax cost of capital for this debt financing?

 
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