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A $1,000 par bond is currently selling for $1,200. 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 $1,200. 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?
Group of answer choices
3.42%
1.20%
4.44%
6.83%
2.22%
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