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1. (7 points) A semi-annual bond with a face value of $1000 is issued for $1000 with a 30 year maturity. The coupon is 7%

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1. (7 points) A semi-annual bond with a face value of $1000 is issued for $1000 with a 30 year maturity. The coupon is 7% annually, and the company must pay 3% flotation costs. If the marginal tax rate is 40%, what is the after cost of debt of this issue? (You may use a calculator and show your entries, i.e. FV = 1000, etc). financial

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