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FIN.com issued a $1,000 par value bond that pays 9 percent annual interest and will mature in 8 years. The current market price for the

FIN.com issued a $1,000 par value bond that pays 9 percent annual interest and will mature in 8 years. The current market price for the bond is $985. Flotation costs will be 9 percent of market price. The company's marginal tax rate is 39%. What will be the FIN's after-tax cost of debt?

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