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COST OF DEBT. The coupon rate of a bond with a maturity of 10 years is 9.5%. This bond pays interest semi-annually. Tax rate is

COST OF DEBT. The coupon rate of a bond with a maturity of 10 years is 9.5%. This bond pays interest semi-annually. Tax rate is 20%. Suppose this bond is currently selling for $1,131. Calculate the after-tax cost of debt for the issuing firm.

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