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CBA has bonds issued with 15 years to maturity, 8% coupon paid annually and priced at 102.5% to face value. If the tax rate is
CBA has bonds issued with 15 years to maturity, 8% coupon paid annually and priced at 102.5% to face value. If the tax rate is 35%, what is the effective cost of debt?
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A. 5.2%
B. 7.71%
C. 5.01%
D. 8%
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