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A company is expected to issue new 15-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The issue

A company is expected to issue new 15-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The issue price will be $1000. The tax rate is 25%. What is the after tax cost of debt?

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