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Dot.Com has determined that it could issue $1,000 face value bonds with an 8% coupon paid semiannually and a five-year maturity at $900 per bond.

Dot.Com has determined that it could issue $1,000 face value bonds with an 8%

coupon paid semiannually and a five-year maturity at $900 per bond. If Dot.Coms marginal tax

rate is 38%, what is the after-tax cost of debt?

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