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Electronic Products has 70,000 bonds outstanding that are currently quoted at 105.8. The bonds mature in 15 years and carry a 8.5 percent annual coupon.

Electronic Products has 70,000 bonds outstanding that are currently quoted at 105.8. The bonds mature in 15 years and carry a 8.5 percent annual coupon. What is the firm's aftertax cost of debt if the applicable tax rate is 34 percent?

Aftertax cost of debt = %

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