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Avicorp has a $10.4 million debt issue outstanding, with a 5.9% coupon rate. The debt has semi-annual coupons, the next coupon is due in six

Avicorp has a $10.4 million debt issue outstanding, with a 5.9% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 93.74% of par value.

The cost of debt is % per year.

If Avicorp faces a 25% tax rate, the after-tax cost of debt is

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