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ABC's outstanding bonds have an 8% annual coupon payment and will mature in 18 years. The bonds are currently selling for 94.25% of par. If

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ABC's outstanding bonds have an 8% annual coupon payment and will mature in 18 years. The bonds are currently selling for 94.25% of par. If the company can issue new bonds at par with similar YTM, what is ABC's before tax cost of debt? If ABC's marginal tax rate is 25%, what is its after-tax cost of debt? 09.07% : 6.80% O 8.74% : 6.56% 8.64% : 6.48% O 8.41% ;6.31% O 9.43% : 7.07%

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