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Eden Co. has bonds outstanding with a coupon rate of 8 percent, a yield to maturity of 10 percent and a current yield of 9

Eden Co. has bonds outstanding with a coupon rate of 8 percent, a yield to maturity of 10 percent and a current yield of 9 percent. If the firm's tax bracket is 35 percent, what is its after-tax cost of debt?

8 percent

5.85 percent

6.5 percent

5.2 percent

10 percent

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