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A company's debt consists of 12% semi-annual coupon bonds with 10 years left until maturity and a face value of $1000. The current price of

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A company's debt consists of 12% semi-annual coupon bonds with 10 years left until maturity and a face value of $1000. The current price of these bonds is $865 and their tax rate is 30%. Which of the following is closest to the company's after-tax cost of debt? 14.61% 10.23% 5.11% 7.31%

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