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A firm issues a 2 0 - year semi - annual coupon payment bond, which nets it $ 1 , 5 1 3 . 5

A firm issues a

20 -

year semi

-

annual coupon payment bond, which nets it $

1, 513.55 .

The coupon rate of the bond is

9.00 % .

The tax rate is

21 % .

What is the after

-

tax cost of debt?

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