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A firm has an outstanding debt with an annual coupon rate of 6 % , seven years maturity, and a price of $ 1 0

A firm has an outstanding debt with an annual coupon rate of 6%, seven years maturity, and a price of $1075 per $1000 face value. What is the pre-tax and after-tax cost of debt if the marginal tax rate of the firm is 22.5%?
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