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An online retailer has 2 5 year $ 1 0 0 0 par value debt that is paying an annual coupon of 8 % .

An online retailer has 25 year $1000 par value debt that is paying an annual coupon of 8%.the market price of debt is 95% of par. If the corporate tx rate is 30% what is the after tax cost of debt capital?

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