Bond interest payments before and after taxes Charter Corp. issued 2,500 deben-
tures with a $1,000 par value and a 7% coupon rate.
a. What dollar amount of interest per bond can an investor expect to receive each
year from Charter?
b. What is Charter's total interest expense per year associated with this bond issue?
c. Assuming that Charter pays a 21% corporate tax, what is the company's net
after-tax interest cost associated with this bond issue?