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Big plc has 6% bonds redeemable in 6 years time at a nominal (par) value of 100. The ex interest market price of these bonds

Big plc has 6% bonds redeemable in 6 years time at a nominal (par) value of 100. The ex interest market price of these bonds is 95.14. The company pays tax at a rate of 20 per cent. Calculate the after-tax cost of these bonds, using the bond approximation model. A. 7.01% B. 5.61% C. 6.83% D. 9.49% ?

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