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A firm has issued a bond. The bond has a 6% coupon rate, paid semiannually, a current maturity of 20 years, and sell for $1,000.

A firm has issued a bond. The bond has a 6% coupon rate, paid semiannually, a current maturity of 20 years, and sell for $1,000. The firms marginal tax rate is 21%. Whats the firms after-tax component cost of debt?

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