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A company looks at the sale of 10-year bonds with a total value of $ 10 million, an individual face value of $ 1,000, and
A company looks at the sale of 10-year bonds with a total value of $ 10 million, an individual face value of $ 1,000, and a coupon interest rate of 10%. The bonds sell for $ 985. Float costs: $ 5 per obligation Tax rate (taxes): 30% What is the cost of debt after taxes? (in percentage)
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