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Bond Yield and After - Tax Cost of Debt A company's 8 % coupon rate, semiannual payment, $ 1 , 0 0 0 par value

Bond Yield and After-Tax Cost of Debt
A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $645.38. The company's federal-plus-state tax 30%.
What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places.
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