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Asbury Corp. issued 30-year bonds 11 years ago with a coupon rate of 9.5%. Those bonds are now selling to yield 7%. The firm also

Asbury Corp. issued 30-year bonds 11 years ago with a coupon rate of 9.5%. Those bonds are now selling to yield 7%. The firm also issued some 20-year bonds 2 years ago with an 8% coupon rate. The two bond issues are rated equally by Standard and Poors and Moodys. Asburys marginal tax rate is 38%. a. What is Asburys after-tax cost of debt? b. What is the current selling price of the 20-year bonds?

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