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Assume that Western Asset Management Company LLC (WAMC) has $1,000 par value zero-coupon bonds outstanding. WAMC bonds are currently trading at $550 with 8 years

Assume that Western Asset Management Company LLC (WAMC) has $1,000 par value zero-coupon bonds outstanding. WAMC bonds are currently trading at $550 with 8 years to maturity. WAMC tax bracket is 35%. Calculate the cost of debt after tax for WAMC (System will not accept percentage (%) sign, therefore write your answer up to four decimals).

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