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company Z, is trying to determine its cost of debt.The firm has bonds outstanding with 30 years to maturity with a 6.3% semi-annual pay coupon

company Z, is trying to determine its cost of debt.The firm has bonds outstanding with 30 years to maturity with a 6.3% semi-annual pay coupon which are trading for $1,070 (for $1,000 par value).The tax rate is 35%.

a. calculate before tax cost of debt

b. after tax cost of debt

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