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5. Rattle me Bones, Inc. sold a 25-year bond issue 10 years ago. It pays a 10% annual coupon rate compounded semi-annually and has a
5. Rattle me Bones, Inc. sold a 25-year bond issue 10 years ago. It pays a 10% annual coupon rate compounded semi-annually and has a $1,000 face value. If the current price per bond is $989, what is the firm's after-tax cost of debt if the firm's tax rate is 35% and the floatation cost is 1% of the current market price? 8.05% 6.68% 5.60% 7.73% A) B)
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