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Company X is issuing a $1,000 par value bond that pays 8% annual interest and matures in 15 years. Investors are willing to pay $950

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Company X is issuing a $1,000 par value bond that pays 8% annual interest and matures in 15 years. Investors are willing to pay $950 for the bond, and the company faces a tax rate of 35%. What is the after-tax cost of debt on the bond where the interest is semi-annually paid? 4. 30% GOOB

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