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14-10. (Computing the cost of debt) Belton Distribution Company is issuing a $1,000 par value bond that pays 7 percent annual interest (with interest paid

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14-10. (Computing the cost of debt) Belton Distribution Company is issuing a $1,000 par value bond that pays 7 percent annual interest (with interest paid semiannually) and matures in 15 years. Investors are willing to pay $958 for the bond. The company is in the 18 percent marginal tax bracket. What is the firm's after-tax cost of debt on the bond

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