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Electronic Products has 39,000 bonds outstanding that are currently quoted at 102.7. The bonds mature in 7 years and carry a 7 percent annual coupon.

Electronic Products has 39,000 bonds outstanding that are currently quoted at 102.7. The bonds mature in 7 years and carry a 7 percent annual coupon. What is the firm's aftertax cost of debt if the applicable tax rate is 32 percent?

Aftertax cost of debt = %

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