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AAA Inc. issued 20-year bond one year ago today at par value with a coupon rate of 8 percent, paid quarterly. Today, the bonds price

AAA Inc. issued 20-year bond one year ago today at par value with a coupon rate of 8 percent, paid quarterly. Today, the bonds price is $1,030. If the tax rate is 34 percent, what is its cost of debt after considering tax?

		5.08 percent
		7.34 percent
		4.94 percent
		8 percent

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