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COST OF DEBT. The coupon rate of a bond with a maturity of 6 years is 4.8%. The yield-to-maturity (YTM) on this bond is 5.4%.

COST OF DEBT. The coupon rate of a bond with a maturity of 6 years is 4.8%. The yield-to-maturity (YTM) on this bond is 5.4%. This bond makes semi-annual coupon payments. Tax rate is 20%. What is the issuing firm's cost of debt (rD)?

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