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Apple Farm Corp. issued five years ago a 2 5 - year $ 1 0 0 0 face value bond with a 9 percent annual

Apple Farm Corp. issued five years ago a 25-year $1000 face value bond with a 9 percent annual coupon rate that has semiannual payments. The bond currently sells for $ 1,175. What is the after- tax cost of debt if the company's tax rate is 40 percent?

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