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Cody Inc. issued a bond at a discount $20. The bond matures in 20 years and has a coupon of 7.5%. payable semi annually. ABC

Cody Inc. issued a bond at a discount $20. The bond matures in 20 years and has a coupon of 7.5%. payable semi annually. ABC incurred $30 in underwriting costs on this issue. What is the After tax cost from this Bond Issue, assuming a tax rate of 25%?

If the answer is 3% enter 3.00

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