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A 10-year, 8% semi-annual coupon bond sells for $800. Assume future value = $1000. What is the before tax cost of debt? If the tax

  1. A 10-year, 8% semi-annual coupon bond sells for $800. Assume future value = $1000.
    1. What is the before tax cost of debt?
    2. If the tax rate is 30%, what is the after-tax cost of debt

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