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16) The current market price of an existing debt issue is $1,100. The bonds have a $1,000 par value, pay interest annually at a 12%

16) The current market price of an existing debt issue is $1,100. The bonds have a $1,000 par value, pay interest annually at a 12% coupon rate, and mature in 9 years. The firm has a tax rate of 34%. What is the after-tax cost of this debt issue

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