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(6 pts) Seven years ago Company YY issued a 30-year $1000 face value bond with a 6% coupon that is paid semi-annually. The bond is

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(6 pts) Seven years ago Company YY issued a 30-year $1000 face value bond with a 6% coupon that is paid semi-annually. The bond is currently priced at $960. a) What is the pre-tax cost of debt for Company Y ? Pre-tax cost of debt = % b) What is the after tax cost of debt for Company Y assuming Company Y has a marginal corporate tax rate of 24%. After-tax cost of debt =

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