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A companys 7.5% coupon rate, semiannual payment, $1,000 par value bond that matures in 10 years sells at a price of $9,825. The companys federal-plus-state

A companys 7.5% coupon rate, semiannual payment, $1,000 par value bond that matures in 10 years sells at a price of $9,825. The companys federal-plus-state tax rate is 25%. What is the firms after-tax component cost of debt for purposes of calculating the WACC?

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