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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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