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2) Suppose a company currently has an outstanding bond issue. The bonds have 20 years until maturity, they pay a coupon rate of 7.50% on

2) Suppose a company currently has an outstanding bond issue. The bonds have 20 years until maturity, they pay a coupon rate of 7.50% on a semiannual basis. If the companys bonds are selling for $960 now, and the companys tax rate is 35%, what is its after-tax cost of debt (round your answer to two decimal places)?

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