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1 . A company s 8 percent coupon rate, paid semiannually, $ 1 , 0 0 0 par value bond which mature in 3 0

1. A companys 8 percent coupon rate, paid
semiannually, $1,000 par value bond which mature in 30
years sells at a price of $887. The marginal tax rate is 40
percent. What is the firms after tax cost of debt?

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