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Consider a bond outstanding that sells for $6,535 and matures in 15 years. The bond pays semiannual coupons and has a coupon rate of 12

Consider a bond outstanding that sells for $6,535 and matures in 15 years. The bond pays semiannual coupons and has a coupon rate of 12 percent. The face value is $5,000. If the company's tax rate is 21 percent, what is the aftertax cost of debt?

4.18%

3.74%

5.01%

8.37%

6.61%

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