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(6 pts) Five years ago company YY issued a 20-year $1000 face value bond with a 7% coupon that is paid semi-annually. The bond is

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(6 pts) Five years ago company YY issued a 20-year $1000 face value bond with a 7% coupon that is paid semi-annually. The bond is currently priced at $980. 9) a) What is the pre-tax cost of debt for Company Y? Pre-tax cost of debt What is the after tax cost of debt for Company Y assuming Company Y has a marginal corporate tax rate of 24%. b) After-tax cost of debt

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