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1. Three years ago JJ Inc. issued 30-year bonds paying 7% semi-annually with a par value of $1,000.These bonds currently sell at 93% of their
1. Three years ago JJ Inc. issued 30-year bonds paying 7% semi-annually with a par value of $1,000.These bonds currently sell at 93% of their Face Value. The company's tax rate is 35%.What is the pre-tax cost of debt?
2. Three years ago JJ Inc. issued 30-year bonds paying 7% semi-annually with a par value of $1,000.These bonds currently sell at 93% of their Face Value. The company's tax rate is 35%.What is the After-Tax cost of debt?
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