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a- Using the cost of debt approximation formula, determine the cost before taxes for a bond that sells at $ 925 of its par value

a- Using the cost of debt approximation formula, determine the cost before taxes for a bond that sells at $ 925 of its par value and that pays a coupon of $ 85 for 20 years. The flotation costs are $ 5 per bond. b- For the case in problem 3, calculate the cost of debt after taxes if the company's tax liability is 40%.

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