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carraway seed company is issuing a 1000 par value bond that pays 7% annual interest and matures in 15 years. investors are willing to pay

carraway seed company is issuing a 1000 par value bond that pays 7% annual interest and matures in 15 years. investors are willing to pay 850 dollars for the bond. Floatation costs will be 3% of the market value. the company is in a 30% marginal tax bracket. what will be the firms after-tax cost of debt on the bond?

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