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Coke currently has 20 year 4.88% coupon bonds that pay semi-annual payments and are non-callable available at a price of $1,005.48. Coke has a tax

Coke currently has 20 year 4.88% coupon bonds that pay semi-annual payments and are non-callable available at a price of $1,005.48. Coke has a tax rate of 22%. What is the after tax cost of debt for Coke?

	A.	2.42%
	B.	3.78%
	C.	4.84%
	D.	6.32%

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