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Carraway Seed Company is issuing a 1.000 par value bond that pays 7% annual interest & matures in 15 years. Investors are willing to pay

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Carraway Seed Company is issuing a 1.000 par value bond that pays 7% annual interest & matures in 15 years. Investors are willing to pay 850 $ for the bond. Flotation costs will be 3 % of market value. The company is in a 30% marginal tax bracket. What will be the firm's after tax cost of debt on the bond

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