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#22 The coupon rate on an issue of debt is 8%. The yield to maturity on this issue is 10% The corporate tax rate is

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The coupon rate on an issue of debt is 8%. The yield to maturity on this issue is 10% The corporate tax rate is 33%. What would be the approximate after tax cost of debt for a new issue of bonds? (Round your answer to 2 decimal places.) 8.85% 5.35% 8.15% 6.70%

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