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6. Emmy's Communications has bonds currently trading at $950 each. The bonds pay coupons semiannually and mature in 10 years. The coupon rate on the

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6. Emmy's Communications has bonds currently trading at $950 each. The bonds pay coupons semiannually and mature in 10 years. The coupon rate on the bonds is 4% and the firm is in the 21% tax bracket. What is the firm's cost of debt? What is the after-tax cost of debt? Cost of debt: 4.63% After-tax Cost of debt: 3.66%

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