[Solved] An Institute issued a 30 year , 8 percent

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An Institute issued a 30 year , 8 percent semi-annual bond 3 years ago. The bond currently sells for 93 percent of its face value.

An Institute issued a 30 year , 8 percent semi-annual bond 3 years ago. The bond currently sells for 93 percent of its face value. The Company's tax rate is 35%,

a. What is the pre-taxed cost of debt?

b. What is the after tax cost of debt?

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