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A companys capital structure includes debt with an average maturity (or duration) of 10 years. The companys rating is AAA and the yield on debt

A companys capital structure includes debt with an average maturity (or duration) of 10 years. The companys rating is AAA and the yield on debt with the same debt rating and similar maturity is 5,5%. The companys marginal tax rate is 30%.

What is the companys after-tax cost of debt.

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