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Beckham Corporation has semiannual bonds outstanding with seven years to maturity that are currently priced at $ 8 1 5 . If the bonds have

Beckham Corporation has semiannual bonds outstanding with seven years to maturity that are currently priced at $815. If the bonds have a coupon rate of 7 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 27 percent? Complete the calculation using the effective annual yield (EAY) for the bond. Round to 2 decimals.
11.13%
10.30%
5.42%
8.13%
7.06%
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