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A firm has bonds with 2 0 years to maturity, paying a $ 6 5 annual coupon, face value of $ 1 0 0 0

A firm has bonds with 20 years to maturity, paying a $65 annual coupon, face value of $1000, and current price of $986. If the firm's tax rate is 21%, what is the firm's after-tax (aka "effective") cost of debt?

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