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company wants to issue a 1 5 - year Bond with $ 1 , 0 0 0 face value and an 8 % Annual coupon.

company wants to issue a 15-year Bond with $1,000 face value and an 8% Annual coupon. the bond can be sold to investors for $1,010 per Bond but will incur transaction cost of $15 per Bond if the company tax rate is 21%. what is the after-tax cost of debt financing to the firm?

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