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A $1,000 par bond is currently selling for $1,100. It has a 7% coupon rate, fifteen years remaining to maturity, and pays interest semi-annually. If

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A $1,000 par bond is currently selling for $1,100. It has a 7% coupon rate, fifteen years remaining to maturity, and pays interest semi-annually. If the firm's tax rate is 40%, what is the after-tax cost of debt? 2.99% 5.97% 1.79% 1.20% 3.58%

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