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ABC Inc. is trying to determine its cost of debt. The firm has bonds with 13 years to maturity that is quoted at 105.2% of

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ABC Inc. is trying to determine its cost of debt. The firm has bonds with 13 years to maturity that is quoted at 105.2% of face value (Face value is 1000). The bond makes semiannual payments and has 6 percent annually coupon rate. What is the aftertax cost of debt if the tax rate is 21%? 5.43% 4.92% 5.58% 4.30%

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