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Cost of debt. A firm with a tax rate of 35% has $1,000 par value bonds outstanding with an annual coupon rate of 7%, 15

Cost of debt.

A firm with a tax rate of 35% has $1,000 par value bonds outstanding with an annual coupon rate of 7%, 15 years remaining to maturity and which are currently selling for $1,050. What would be the approximate (a) before-tax and (b) after-tax cost of debt for this firm? [ ]

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