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A firm recently issued $1.000 par value. 15 year bonds with a coupon rate of 9%. Coupon interest payments will be paid semi- annually. The

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A firm recently issued $1.000 par value. 15 year bonds with a coupon rate of 9%. Coupon interest payments will be paid semi- annually. The bonds sold at par value, but the form paid flotation costs amounting to 5% of par value. The firm has a marginal tax rate of 34%. What is the firm's after-tax cost of debt for these bonds? 6.36 0 482 09.05 05.85 9.64

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