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A $1,000 par bond is currently selling for $1,100. It has a 9% coupon rate, fifteen years remaining to maturity, and pays interest semi-annually. If
A $1,000 par bond is currently selling for $1,100. It has a 9% coupon rate, fifteen years remaining to maturity, and pays interest semi-annually. If the firm's tax rate is 35%, what is the after-tax cost of debt?A. 9.00% B. 7.84% C. 6.07% D. 5.85% E. 5.10%
A. 9.00%
B. 7.84%
C. 6.07%
D. 5.85%
E. 5.10%
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