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Answers to the bottom area. I calculated 5.36% for a or 5.86% 3.22% for b or 3.52% A1 x fio E F G AB 01/01/00

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Answers to the bottom area. I calculated 5.36% for a or 5.86% 3.22% for b or 3.52%

A1 x fio E F G AB 01/01/00 01/01/17 110 Settlement Maturity Price (% of par) Coupon rate Payments per year Tax rate 6.80% 40% Output Area a. Pretax cost of debt. b. Aftertax cost of debt Which is more relevant, the pretax or the after-tax cost of debt and why? Sim 3a Sim 3b . Sim 30 Sim Ready Type here to search

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