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ADK has 30,000 15-year 9 percent semi-annual coupon bonds outstanding. If the bonds currently sell for 111 percent of par and the firm pays an

ADK has 30,000 15-year 9 percent semi-annual coupon bonds outstanding. If the bonds currently sell for 111 percent of par and the firm pays an average tax rate of 21 percent, what will be the before-tax and after-tax component cost of debt?

7.74%;6.11%

7.91%;5.06%

8.05%;5.15%

9%;5%

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