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D 1. Kowen Lodging Associates issues a fifteen-year maturity coupon paying bond to seek for an additional fund for a possible investment. This $1,000 face

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D 1. Kowen Lodging Associates issues a fifteen-year maturity coupon paying bond to seek for an additional fund for a possible investment. This $1,000 face value (par value) bond has $52.00 issuance cost and pays 7.00% annual coupon rate. Based on the information given, determine the after-tax cost of debt for this bond issuance if the marginal tax rate is 40.00%. 4.55% 4.00% 3.89% 5.11%

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