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(Cost of debt) Belton Distribution Company is issuing a $1 comma 000 par value bond that pays 7.2 percent annual interest and matures in 15

(Cost of debt) Belton Distribution Company is issuing a $1 comma 000 par value bond that pays 7.2 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay $960 for the bond. The company is in the 19 percent marginal tax bracket. What is the firm's after-tax cost of debt on the bond?

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