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a company has a $1000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest payment of $95, and is

a company has a $1000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest payment of $95, and is currently selling for $945 per bond. The company is in 35% tax bracket. Compute yield to maturity and make the approriate tax adjustment to determine the aftwer-tax cost of the debt.

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