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A companys 6% coupon rate, semiannual payment, $1000 par value bond that matures in 20 years sells for $545. The companys marginal tax rate (state

A companys 6% coupon rate, semiannual payment, $1000 par value bond that matures in 20 years sells for $545. The companys marginal tax rate (state plus federal) is 35%. What is the firms after-tax cost of debt for the purposes of calculating WACC. 7.85%

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